Exchange Control Amnesty and Amendment of Taxation Laws Act, 2003 (Act No. 12 of 2003)

Chapter I : Exchange Control Amnesty and accompanying tax measures

Part G : Miscellaneous

28. Limitation for purposes of Income Tax Act
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1)For purposes of section 22 of the Income Tax Act, 1961, the value or cost of any foreign asset on 28 February 2003 in respect of which approval for amnesty was granted in terms of section 9, may not exceed the value in foreign currency of that foreign asset as disclosed for purposes of the determination of the exchange control amnesty levy.

 

2)For purposes of the Eighth Schedule to the Income Tax Act, 1962, the base cost of any foreign asset in respect of which approval for amnesty was granted in terms of section 9, may not exceed the sum of the value in foreign currency of that foreign asset on 28 February 2003 as disclosed for purposes of the determination of the exchange control amnesty levy and any expenditure allowable in terms of paragraph 20 of the Eighth Schedule to the Income Tax Act, 1962, as is incurred after that date.

 

3)The aggregate of deductions and allowance in terms of the Income Tax Act, 1962, in respect of an allowance asset, as defined in section 31 of that Act, for all years of assessment ending on or after 3 February 2003, shall not exceed the sum of the value in foreign currency of that foreign asset as disclosed for purposes of the determination of the exchange control amnesty levy; and the cost of any additions and improvements after 28 February 2003.