6Determination of costs of construction or modification

6 Determination of costs of construction or modification

(1) Where the Secretary: (a) is unable to verify the eligible costs of the construction or modification of a bountiable vessel; or (b) having regard to sound accounting principles, forms the opinion that costs included in the eligible costs of the construction or modification of a bountiable vessel: (i) are incorrect or overestimated; (ii) should not have been characterised as eligible costs; (iii) are higher than would have been the case if the shipbuilder had not marginally costed or similarly disproportionately costed the construction of a vessel in respect of which bounty is not payable; (iv) have been fixed in order to obtain an increase in bounty; (v) are unduly higher than costs incurred by other shipbuilders in respect of similar vessels; (vi) have been increased as the result of the influence of a relationship between the shipbuilder and an associate of the shipbuilder; or (vii) are higher than would have been the case if the shipbuilder had provided the services that were provided, and charged for, by an associate of the shipbuilder; the Secretary may, in writing, determine the costs that are, for the purposes of this Act, to be taken to be the eligible costs of the construction or modification of the vessel. (1A) Where the Secretary: (a) is unable to verify the eligible research and development expenditure incurred by a shipbuilder in relation to the construction or modification of bountiable vessels; or (b) having regard to sound accounting principles, forms the opinion that the expenditure included in the eligible research and development expenditure: (i) is incorrect or overestimated; or (ii) should not have been characterised as eligible research and development expenditure; or (iii) is unduly higher than expenditure incurred by other shipbuilders in respect of similar eligible research and development activities; or (iv) has been fixed in order to obtain an increase in eligible research and development expenditure bounty; or (v) has been increased as the result of the influence of a relationship between the shipbuilder and an associate of the shipbuilder; or (vi) is higher than would have been the case if the shipbuilder had provided the services that were provided, and charged for, by an associate of the shipbuilder; the Secretary may, in writing, determine the expenditure that is, for the purposes of this Act, to be taken to be the eligible research and development expenditure incurred by a shipbuilder in relation to the construction or modification of bountiable vessels. (2) Where the Secretary is unable to verify the time at which eligible costs were, or eligible research and development expenditure was, incurred during the construction or modification of the bountiable vessel, the Secretary may, in writing, determine the time that is, for the purposes of this Act, to be taken to be the time at which those eligible costs were, or eligible research and development expenditure was, incurred. (3) In making a determination under subsection (1) or (1A) in relation to a bountiable vessel the Secretary may disregard any costs charged to, or imposed on, the shipbuilder by an associate of the shipbuilder, being costs that are not actually incurred by the associate, unless the associate charges other persons of whom he or she is not the associate the same amount as the associate charges the shipbuilder of whom he or she is the associate.