7Determination of cost etc.

#### 7 Determination of cost etc. (1) Where, in relation to a claim by a publisher or printer of a book for bounty to be paid in respect of the book, the CEO forms the opinion that, having regard to sound accounting principles, a cost by reference to which the publisher’s manufacturing cost of the book or the publisher’s paper cost in relation to the book is ascertained: (a) is incorrect or over‑estimated; (b) is higher than would have been the case if the publisher had not marginally costed or similarly disproportionately costed the production of books or other goods in respect of which bounty is not payable; (c) has been fixed in order to obtain an increase in bounty; (d) is unduly higher than a similar cost incurred by other publishers of similar books; (e) has been increased as the result of the influence of a relationship between the publisher and an associate of the publisher; or (f) is higher than would have been the case if the publisher had provided services that were provided, and charged for, by an associate of the publisher; the CEO may, by writing signed by him or her, determine the publisher’s manufacturing cost of the book or the publisher’s paper cost in relation to the book, as the case may be, being the publisher’s manufacturing cost or publisher’s paper cost that the CEO considers to be appropriate, and the publisher’s manufacturing cost of the book or the publisher’s paper cost in relation to the book, as the case may be, shall, for the purposes of this Act, be the publisher’s manufacturing cost or publisher’s paper cost, so determined. (2) Where, in relation to a claim by a publisher or printer of a book for bounty to be paid in respect of the book, the CEO forms the opinion that, having regard to sound accounting principles: (a) a price by reference to which the publisher’s manufacturing price of the book is ascertained: (i) is incorrect or over estimated; (ii) is higher than would have been the case if the manufacturer or a manufacturer of the book had not marginally priced or similarly disproportionately priced the production of books or other goods in respect of which bounty is not payable; (iii) has been fixed in order to obtain an increase in bounty; (iv) is unduly higher than a similar price charged by other manufacturers of similar books; (v) has been increased as the result of the influence of a relationship between the publisher and an associate of the publisher or between a manufacturer of the book and an associate of the manufacturer; (vi) is higher than would have been the case if: (A) the publisher had provided services that were provided, and charged for, by an associate of the publisher; or (B) the manufacturer, or a manufacturer, of the book had provided services that were provided, and charged for, by an associate of the publisher or of that manufacturer; or (b) the publisher’s manufacturing price of the book is higher than would have been the case if the manufacturer or a manufacturer of the book had charged, or had not undercharged, for a production process carried out outside Australia; the CEO may, by writing signed by him or her, determine the publisher’s manufacturing price of the book, being the price that the CEO considers to be appropriate, and the publisher’s manufacturing price of the book shall, for the purposes of this Act, be the price so determined. (3) Where the CEO makes a determination under subsection (1) or (2) in relation to a book, the CEO shall give to each person who is a publisher or a printer of the book a copy of the determination.