Page 112 - SAIT Compendium 2016 Volume2

PN 4/1999 Income Tax acT: PracTIce noTes YEAR END 28-02-1999
Debt
Portion of the premium portion of the exchange difference on 28-02-1998 allocated to the 1999 year of assessment
(R12 000 x 3 ÷ 6)
Debt
Ruling exchange rates:
Date of previous translation (28-02-98)
Date of realisation (31-05-1998) Exchange difference:
[(6,4900 – 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:
[(6,4900 – 6,5600) x $100 000]
NET TAX RESULT
(– R6 000 + R0 – R6 000 – R7 000 + R7 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
6,4900 6,5600
6,4900 6,5600
PN 4/1999
R6 000 loss
R7 000 loss
R7 000 gain
R12 000 loss
R637 000 R649 000 R 12 000
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SAIT CompendIum oF TAx LegISLATIon VoLume 2