Page 109 - SAIT Compendium 2016 Volume2
P. 109
PN 4/1999 Income Tax acT: PracTIce noTes YEAR END 28-02-1998
Debt
PN 4/1999
Ruling exchange rates:
Transaction date (01-12-1997) 6,3700
Date of translation (28-02-1998) Exchange difference:
[(6,3700 – 6,4500) x $100 000]
Forward exchange contract
Ruling exchange rates:
Transaction date (01-12-1997) 6,4900
Date of translation (28-02-1998) 6,5100 Exchange difference:
[(6,4900 – 6,5100) x $100 000]
YEAR END 28-02-1999 Debt
Ruling exchange rates:
Date of previous translation (28-02-98) Date of realisation (31-05-1998)
Exchange difference:
[(6,4500 – 6,5600) x $100 000]
Forward exchange contract
Ruling exchange rates:
Date of previous translation (28-02-98) Date of realisation (31-05-1998)
Exchange difference:
[(6,5100 – 6,5600) x $100 000]
NET TAX RESULT
(– R8 000 + R2 000 – R11 000 + R5 000)
RECONCILIATION
Cost price of stock on transaction date ($100 000 x 6,3700)
Rands paid to purchase $100 000
on 31-05-1998 ($100 000 x 6,4900)
Net loss
6,4500
R8 000 loss
R2 000 gain
6,4500 6,5600
6,5100 6,5600
R11 000 loss
R5 000 gain
R12 000 loss
R637 000 R649 000
R 12 000
SAIT CompendIum oF TAx LegISLATIon VoLume 2
101
