Section 78: Non-arm's length transactions

78. Non-arm’s length transactions.— Where an asset is disposed of in a non- arm’s length transaction — (a) the person disposing of the asset shall be treated as having received consideration equal to the fair market value of the asset determined at the time the asset is disposed; and (b) the person acquiring the asset shall be treated as having a cost equal to the amount determined under clause (a).

Effective date: 2001-09-13

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