13Determination of factory cost etc.

13 Determination of factory cost etc.

(1) Where, in relation to a claim for bounty or to a return in accordance with section 24 or otherwise for the purposes of this Act, the CEO: (a) is unable to verify the factory cost incurred by a producer in respect of bountiable equipment; or (b) forms the opinion that, having regard to sound accounting principles, costs included in the factory cost incurred by a producer in respect of bountiable equipment: (i) are incorrect or overestimated; (ii) are higher than would have been the case if the producer had not marginally costed or similarly disproportionately costed the production of goods in respect of which bounty is not payable; (iii) have been fixed in order to obtain an increase in bounty; (iv) are unduly higher than similar costs incurred by other producers of similar equipment; (v) have been increased as the result of the influence of a relationship between the producer and an associate of the producer; or (vi) are higher than would have been the case if the producer had provided services that were provided, and charged for, by an associate of the producer; the CEO may, by instrument in writing signed by him or her, determine, for the purposes of this Act, the factory cost incurred by a producer in respect of the equipment, being the cost that, having regard to all relevant circumstances, the CEO considers to be appropriate, and that determination shall have effect accordingly. (2) Where, in relation to a claim for bounty or to a return in accordance with section 24 or otherwise for the purposes of this Act, the CEO: (a) is unable to verify a cost referred to in section 10, 11 or 12 in respect of bountiable equipment; or (b) forms the opinion that, having regard to sound accounting principles, such a cost: (i) is incorrect or underestimated; (ii) is lower than would have been the case if the relevant producer had not marginally costed or similarly disproportionately costed the production of goods in respect of which bounty is not payable; (iii) has been fixed in order to obtain an increase in bounty; (iv) is unduly lower than a similar cost incurred by other producers of similar equipment; (v) has been reduced as the result of the influence of a relationship between the producer and an associate of the producer; or (vi) is lower than would have been the case if the producer had provided services that were provided, and charged for, by an associate of the producer; the CEO may, by instrument in writing signed by him or her, determine that cost for the purposes of this Act, being the cost that, having regard to all relevant circumstances, the CEO considers to be appropriate, and that determination shall have effect accordingly. (3) When making a determination under subsection (1) or (2) in relation to a bountiable equipment A or bountiable equipment B, the CEO may, if he or she considers it appropriate, disregard any costs charged to, or levied on, the manufacturer of the bountiable equipment A or the modifier of the bountiable equipment B, as the case may be, by an associate of the manufacturer or modifier, as the case may be, other than costs actually incurred by the associate.