A person is liable for an administrative penalty for a dental service rendered by, or on behalf of, the person if:
(a) the Chief Executive Medicare has served notice (as mentioned in subsection 56C(4)) on the person claiming an amount (the total amount ) as a debt due to the Commonwealth; and
(b) the total amount consists of, or includes, an amount (the recoverable amount ) in respect of the service recoverable as a debt due to the Commonwealth from the person under any of the following provisions:
(i) subsection 56(2);
(ii) subsection 56A(1), (3) or (5); and
(c) the total amount is more than:
(i) $2,500; or
(ii) if a higher amount is prescribed by the regulations--that higher amount.