Page 132 - SAIT Compendium 2016 Volume2

PN 4/1999 Income Tax acT: PracTIce noTes PN 4/1999
Year of assessment
28-02-1994
28-02-1995
Portion of the transitional exchange difference realised in the rst year of assessment after the date of commencement is taken into account in that year of assessment
(R240 000 × $300 000 ÷ $600 000)
R120 000
Portion of transitional exchange difference unrealised at the end of the rst year of assessment after the date of commencement: (a) 50% of that portion is taken into account in the rst
year of assessment after the date of commencement
[50% × (R240 000 × $300 000 ÷ $600 000)]
(b) 50% of that portion is taken into account in the succeeding year
of assessment
R60 000
R60 000
Note:
Any exchange difference in respect of that portion of the debt which was still outstanding at the beginning of the rst year of assessment ending on or after 1 January 1994 (the commencement date of section 24I), arising after such date, must be brought into account in terms of that section as a normal exchange difference.
YEAR END 28-02-1993 Debt – paid
Claim in terms of section 24B
((2,8500 – 2,6500) x $300 000)
Cost of stock
See calculation above
YEAR END 28-02-1994 Debt – paid
Ruling exchange rates:
Date of rst translation (28-02-1993) Date of realisation (01-09-1993)
Exchange difference:
[(3,0500 – 3,2500) x $300 000]
Debt – outstanding
Ruling exchange rates:
Date of rst translation (28-02-1993) Date of translation (28-02-1994)
Exchange difference:
[(3,0500 – 3,4500) x $300 000]
Transitional exchange difference
R60 000 loss R135 000 loss
3,0500 3,2500
3,0500 3,4500
R60 000 loss
R120 000 loss R60 000 loss
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SAIT CompendIum oF TAx LegISLATIon VoLume 2