1) For the purposes of this section ‘foreign currency’ means any currency other than currency of the Republic.
2) The amount to be included in the gross income of a person in respect of the disposal by that person of any foreign equity instrument acquired during any year of assessment ending before 8 November 2005 and which constitutes trading stock, shall be the amount received or accrued in any currency other than currency of the Republic in respect of that disposal translated into the currency of the Republic at the average exchange rate for the year of assessment during which that foreign equity instrument is disposed of.
3) Any–
a) expenditure incurred by a person in any foreign currency in respect of any foreign equity instrument acquired during any year of assessment ending before 8 November 2005 which is allowable as a deduction in terms of the provisions of this Act; or
b) amount in any foreign currency which is taken into account in the determination of the taxable income of any person in respect of any foreign equity instrument acquired during any year of assessment ending before 8 November 2005,
shall, for the year of assessment in which that foreign equity instrument is disposed of, be translated into the currency of the Republic—
i) in the case of a foreign equity instrument acquired before 1 October 2001, at the ruling exchange rate on 1 October 2001; or
ii) in any other case, at the average exchange rate for the year of assessment during which-
aa) in the case of paragraph (a), that expenditure was actually incurred by that person, or
bb) in the case of paragraph (b), the expenditure which relates to the amount so taken into account was actually incurred by that person.