have a client that has a local company who has received a loan from its
offshore holding company. The local company has an unrealised forex loss of
some R21m as a result of this loan. The loan is disclosed as a non-current
we do have to reverse the forex loss as the loan is a long term
liability. If it were a current liability then we would make no adjustment and
they would get the deduction for the forex loss? Please can you confirm whether
I have the correct understanding of the revised S24I(10A) provisions.
A: You are correct that section 24I(10A) does
defer the unrealised forex gains/losses on the debt where it is a non-current
liability for IFRS purposes and conforms to the other requirements
(s24I(10A)(a)(ii) & (iii)). Therefore no tax deduction or inclusion will be
provided for at year end until the year of assessment in which it realises.
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consequences of decisions taken based on this query and answer. It remains your
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