Income Tax Act 2007 section 611

Power to modify Chapter in non-arm's length case

Section 611 gives the Treasury the power to make regulations that modify the rules on sale and repurchase agreements where the arrangements are not conducted on arm's length terms.

• The Treasury can make regulations to modify the provisions of the Chapter dealing with sale and repurchase agreements
• This power applies specifically where agreements are not on terms that would be expected between independent parties dealing at arm's length
• The scope of the power covers all relevant provisions in the Chapter, including the interpretive rules in section 610
• The original source provision was section 737E of ICTA, and the rewrite preserves the same practical scope without changing the law