Page 90 - P6 Slide Taxation - Lecture Day 4
P. 90
HOW DOES A DISPOSAL IN PAR
43(1) DIFFER FROM PAR
CGT is only calculated on the CGT is calculated on the real
real gain/loss and not on the gain/loss and on the foreign
43(1A)?
foreign currency gain/loss. currency gain/loss.
Par 43(5): "DEEMED DISPOSALS"
Scenario:
Seller is deemed to derive an amount of proceeds, and
the base cost of that asset is determined in any foreign currency.
Effect for the seller?
Proceeds deemed to be denominated in the same currency of the base
cost.
Effect for the buyer?
In terms of par 12, par 38 and par 40 the buyer (acquirer) is deemed to
acquire the asset at a specific value.
These "values" are deemed to be denominated in the same currency
US 20o 09f the base cost.
