Page 197 - SAIT Compendium 2016 Volume1

s 24I INCOME TAX ACT 58 OF 1962 s 24I
such foreign currency option contract having been exercised, or when such foreign currency option contract expires without such right having been exercised, or when such foreign currency option contract is disposed of; or
[Para. (c) substituted by s. 11 (1) (a) of Act 140 of 1993.] (d) an amount which constitutes a unit of currency, when
that amount is disposed of;
[Para. (d) added by s. 27 (1) (d) of Act 74 of 2002.] ‘ruling exchange rate’ means, in relation to an
exchange item, where such exchange item is—
(a) a debt in a foreign currency on—
[Words in para. (a) preceding sub-para. (i) substituted by s.
53 (1) (d) of Act 22 of 2012.]
(i) transaction date, the spot rate on such date;
[Sub-para. (i) substituted by s. 33 (1) (a) of Act 31 of 2005.] (ii) the date it is translated, the spot rate on such
date; or
[Sub-para. (ii) substituted by s. 33 (1) (a) of Act 31 of 2005.] (iii) the date it is realised, the spot rate on such date: Provided that where the rate prescribed in respect of a debt in terms of this de nition is the spot rate on transaction date or the spot rate on the date on which such debt is realised, and any consideration paid or incurred or received or accrued in respect of the acquisition or disposal of such debt was determined by applying a rate other than such spot rate on transaction date or date realised, such spot rate shall be deemed to be the acquisition rate or disposal rate, as the case may be;
[Proviso to para. (a) substituted by s. 53 (1) (e) of Act 22 of 2012.]
(b) a forward exchange contract on—
(i) transaction date, the forward rate in terms of
such forward exchange contract;
(ii) the date it is translated, the market-related
forward rate available for the remaining period of such forward exchange contract or in respect of a forward exchange contract which is an affected contract, the forward rate in terms of such forward exchange contract;
[Sub-para. (ii) substituted by s. 18 (1) (c) of Act 21 of 1994, by s. 35 (1) (b) of Act 30 of 1998, by s. 33 (1) (b) of Act 31 of 2005 and by s. 26 (1) (a) of Act 9 of 2006.]
(iii) thedateitisrealised,thespotrateonsuchdate;or (c) a foreign currency option contract on—
(i) transaction date, a nil rate; (ii) the date it is translated—
(aa)in relation to a foreign currency option contract which is not an affected contract, the rate obtained by dividing the market value of such foreign currency option contract on that date by the foreign currency amount as speci ed in such foreign currency option contract; or
(bb) in relation to a foreign currency option contract which is an affected contract, the rate obtained by dividing any amount included or deducted, as the case may be, in terms of subsection (3) (b) by the foreign currency amount, as speci ed in such affected contract;
[Item (bb) substituted by s. 27 (1) (e) of Act 74 of 2002.] [Sub-para. (ii) substituted by s. 35 (1) (c) of Act 30 of 1998.]
(iii) the date it is realised, the rate obtained by dividing the market value of such foreign currency option contract on that date by the foreign currency amount as speci ed in such foreign currency
option contract: Provided that where such foreign currency option contract is realised by the disposal thereof, the rate shall be obtained by dividing the amount received or accrued as a result of the disposal of such foreign currency option contract, by the foreign currency amount as speci ed in such foreign currency option contract;
[Sub-para. (iii) amended by s. 11 (1) (b) of Act 140 of 1993.]
(iv) . . .
[Sub-para. (iv) deleted by s. 11 (1) (c) of Act 140 of 1993.]
(d)
an amount which constitutes a unit of currency, on— (i) transaction date, the spot rate on that date;
(ii) the date it is translated, the spot rate on that date; or
(iii) the date it is realised, the spot rate on that date:
[Para. (d) inserted by s. 27 (1) (f) of Act 74 of 2002.] Provided that the Commissioner may, having regard to
the particular circumstances of the case, prescribe an alternative rate to any of the aforementioned prescribed rates to be applied by a person in such particular circumstances, if such alternative rate is used for the purposes of nancial reporting pursuant to IFRS;
[Proviso to de nition of ‘ruling exchange rate’ substituted by s. 44 (b) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of proviso to de nition of ‘ruling exchange rate’ in force until date of promulgation of Taxation Laws Amendment Act, 2015
: Provided that the Commissioner may, having regard to the particular circumstances of the case, prescribe an alternative rate to any of the aforementioned prescribed rates to be applied by a person in such particular circumstances, if such alternative rate is used for accounting purposes in terms of generally accepted accounting practice;
in the local currency at the end of any year of assessment, SAIT CompendIum oF TAx LegISLATIon VoLume 1 189
[De nition of ‘ruling exchange rate’ amended by s. 18 (1) (d) of Act 21 of 1994.]
‘spot rate’ . . .
[De nition of ‘spot rate’ substituted by s. 36 (1) (d) of Act 60 of 2001 and deleted by s. 33 (1) (c) of Act 31 of 2005.]
‘transaction date’ means, in relation to— (a) . . .
[Para. (a) deleted by s. 53 (1) (f) of Act 22 of 2012.]
a debt owing by a person, the date on which such debt was actually incurred;
(b)
(c) . . .
[Para. (c) deleted by s. 53 (1) (f) of Act 22 of 2012.]
(d) a debt owing to a person, the date on which the amount payable in respect of such debt accrued to such person or the date on which such debt was
acquired by such person in any other manner;
(e) a forward exchange contract, the date on which such
contract was entered into;
(f) a foreign currency option contract, the date on which
such contract was entered into or acquired; and
(g) an amount which constitutes a unit of currency, the
date on which that amount was acquired;
[Para. (g) added by s. 27 (1) (h) of Act 74 of 2002.]
‘transitional exchange difference’ . . .
[De nition of ‘transitional exchange difference’ deleted by
s. 36 (1) (e) of Act 60 of 2001.]
‘translate’ means the restatement of an exchange item
INCOME TAX ACT – SECTIONS