Commentary on Sections Overview Overview Section 611: Power to modify Chapter in non-arm’s length case
1785.This section enables the Treasury to make regulations modifying the provisions of this Chapter in cases where agreements for sale and repurchase are not what one would expect of persons dealing at arm’s length. It is based on section 737E of ICTA.
1786.Section 737E(3) of ICTA does not mention section 730B of ICTA. But section 611(1), in rewriting section 737E(3), includes within its scope section 610, which rewrites section 730B. This does not mean that section 611(1) changes the law.
1787.Since section 737E(3) refers to section 730A and section 730B has the sidenote “interpretation of section 730A”, the omission of “section 730B” from section 737E(3) is not significant. Section 737E(3) enables the Treasury to modify section 730B indirectly (for example, by making a regulation saying that, despite anything in section 730B, section 730A applies as if it said …).