(1) Where the Corporation is satisfied that any person is indebted to or liable to make a payment to another person and that other person is indebted to the Fund under this Act, the Director may deliver to the first mentioned person a demand for payment as set out in Form DN 1 appearing in Schedule 5, stating—
(a) the name of the person indebted to the Fund;
(b) the amount of the debt due to the Fund including any surcharge on the debt; and
(c) where the first mentioned person is the employer of the person indebted to the Fund, the amount demanded for each pay period, being an amount not exceeding 1/3 of the sum payable to the employee during that period, expressed either as a dollar amount or a percentage of remuneration.
(2) A person who receives a demand for payment under subsection (1) relating to one of his or her employees shall pay to the Corporation at the same time as he or she would pay that employee, the amount demanded by the Director, or the amount of the employee's indebtedness to the Fund whichever is the lesser, and shall continue to do so on each occasion that the employee is entitled to be paid until the employee's indebtedness to the Fund is satisfied.
(3) A person who receives a demand for payment under subsection (1) relating to a person other than one of his or her employees shall, if he or she is indebted to or liable to make payment to that other person, pay to the Corporation the amount of his or her indebtedness which he or she is liable to pay to that person or the amount of that person's indebtedness to the Fund whichever is the lesser.
(4) A person who has discharged any liability to a person indebted to the Fund under this Act after receiving a demand for payment under subsection (1) without complying with subsection (2) or (3) commits an offence and is liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both such fine and imprisonment.
(5) The payment of an amount to the Corporation under subsection (2) or (3) operates as a discharge of any liability of the person making the payment to the person to whom the payment would, but for this section, have been paid, to the extent of the amount paid to the Corporation.