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SARS rates can be found here.   https://www.sars.gov.za/Legal/Legal-Publications/Pages/Average-Exchange-Rates.aspx

A couple of notes on translation of foreign income
1.  A taxpayer can elect to utilize either the Spot rate or the average rate
2.  One is not obliged to use the SARS rates (as published above), but can use other rates.  Note though the onus of proof alway's lies with the taxpayer, so you'd need to be able to substantiate the rate being used. When not using the spot rate, I have alway's used the SARS rates (for simplicity and ease of justifying).  Note that if you use daily rates, please keep the proof and source so you can justify it with SARS etc.
3.  You need to be consistent in use of rates in each year of assessment. (But can utilize a different method in a subsequent year).

Especially when they have phrases like "No deductions are allowed for expenditure incurred to produce foreign dividends."?

Almost forgot - above phrase would only apply if the foreign earnings are dividends as defined.  To the extent that the income is not dividends, but (say) trading income, then any expenditure (within certain limitations) incurred in the production of that trading income, is deductible for tax purposes.

XXX - surely the time of holding Bitcoins - i.e. time erosion between buy and sell dates determine whether it is CGT or income. I too believe there are going to be some extraordinary test cases in the not too distant future

Hedge against inflation was the classic "Kruger Rand" investment defense in the day......  And it typically didn't work, due to the fact the only way to realize a return was to sell the investment, which indicates a profit making intention......

There has however been numerous cases where a taxpayer has successfully had a sale of Kruger Rands as a capital item, typically as a result of the taxpayer having no intention to dispose of the Kruger Rands (i.e. had a intention to bequeath it to his children).

E.g. In CIR vs Nel, the taxpayer successfully won the case as a result of him selling his Kruger rands (to deal with an unexpected expense), and his original intention was found to be a long term investment acting as a hedge against inflation and where he intended to bequeath to his children.

There are other similar cases

2) If all divi TUSD is converted to BTC, and only tax portion of BTC is converted to ZAR, and the remaining BTC is later sold for ZAR, would that constitute a CGT event?

3) And what if the divi was paid in BTC, and non-tax portion later converted to ZAR, would that incur further taxes?

4) Another question is how to declare Foreign Dividends received, given the conversion/tx fees to get the Foreign Dividends Tax amount to ZAR?

5) Also, at what point would the Revenue Service audit the original source of the funds invested in this foreign security?

What irks me is that if the Crypto Hedge Fund turns out to be a scam, then the Revenue Service got its share of profits without rendering any service or infrastructure to protect or facilitate the investment. Taking the capital loss for the tax year does not compensate nearly enough.

Couple of points.
2/3  SARS is of the opinion that each disposal of crypto (whether sold for ZAR or any other asset such as another crypto currency) constitutes a disposal for CGT purposes at the time of disposal.   (and not when its finally converted to ZAR).  I agree with this opinion.
4.  I'm unfamiliar of the nature of the TUSD/Crypto Hedge fund.  So I'll prefer not to give an opinion on this, other than note that foreign dividends would normally result in the dividend being taxed at a. maximum effective rate of 20% in South Africa.  Whether the fund would meet this definition is debatable (alternative is to be taxed at normal rates).  Either way, the "dividend" should be translated at either the spot rate or the average rate for the year and included in your taxable income in the appropriate manner.

5.  Interesting question.   SARS effectively operates on a self assessment basis.  I.e. what you submit is what you get assessed (automatically) for.   There risk engine would normally dictate whether you get flagged for an audit or not.   E.g. abnormal expense claims, large refunds, unmatched IRP5 income or any other risk indicators might flag you for an audit.     The risk in the hypothetical scenario that you depict would typically be flagged due to an inexplicable increase in your assets/capital base, which if you're submitting a balance sheet (not all taxpayers are required to submit a balance sheet), might trigger the risk assessment on submission of the return.  Alternatively, if you had to buy a property cash, this might flag something at that point in time (also note that SARS use of data is improving, and will continue to improve, as the amount of data it can collect and process improves).   

Putting aside the moral side of things.   Residence based taxation is a worldwide principle adopted in multiple countries, with the view that a residence are taxed (within limitations) on there world wide income - irrespective of whether the taxing country provides the "infrastructure" etc.   

As a aside - I do think Crypto is going to provide some interesting case studies in the years to follow - as for example, you and many others have assumed that any gain's from crypto are capital gains......  this is not necessarily the case - as its arguable that if the only way you can realize the investment in crypto  is via selling at a later stage you clearly have a profit making intention and thus the gain would be revenue and not capital.  (Kruger rands have a interesting case law in this regard).

Hi everyone just like some advise, I trade Us stocks only and only trade short to medium term.  How would you actually go about, declaring the profits to SARS, what form do you need to fill in, can you do it on your efilling? Do you declare it quarterly or annually? There is not allot of info on how to do this on the net and the last thing I need is to get into trouble with SARS.

Declared annually on your IT 12 income tax return via EFiling

Matter of interest,   I just pulled this off the RandSwiss website - presumable the same product (but I am guessing a bit)

"The Euro Stoxx Capital Protector is available within the Glacier International Global Life Plan.
Tax administration is taken care of within the policy on the investor’s behalf. All USD returns earned will be taxed as interest at maturity, using the prevailing tax rates.
The current tax rate on interest for individuals is 30%. Based
on these current rates, a cumulative return of 55% over the five- year period is equal to a return of 38.5% after tax."

Reading this (and the other product blurb's) and speculating a bit, the investment is housed in a Insurance wrapper of sorts, hence the 30% tax rate (individual policy holder fund) referred to in the quote.    Capital gains inclusion rate for a IPF is 40% x the 30% tax rate = the 12% referred to in the original post.

Sort of makes sense, but what doesn't make sense whether the growth in the "investment" is taxed (within the fund) at 30% as interest (per the product brochure) or at 12% as a capital gain (per the post above), or perhaps either depending on the nature of the growth.

In any event, if the above thinking is correct - I'd have to apply my mind to the tax consequences of you incurring a loss (should the investment tank), but I'm immediately thinking that any loss is disregarded by yourself (i.e. you can't set off the capital loss against other gains) as a result of you be the original policy holder in a long term insurance policy.

No thank you - I'll stay away.

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4. At the current tax schedule, you will pay a 12% capital gains tax rate on the profits. This does not depend on your personal marginal tax rate.

I would really like to understand the reasoning behind this "12% capital gains tax rate." 

thanks in advance.