Clause 7

by inserting, immediately after “(3),” in subsections (1) and (2), “(3G),”;

by deleting the word “Only” in subsection (3) and substituting the words “Subject to subsection (3G), only”;

by deleting the words “subsection (3)(a)” in subsection (3D) and substituting the words “subsections (3)(a) and (3G)”;

by deleting the words “subsections (1), (2) and (3)” in subsection (3E) and substituting the words “subsections (1), (2), (3) and (3G)”;

by inserting, immediately after subsection (3F), the following subsection:“(3G) Where an SRS member makes a withdrawal of all of the funds standing in the SRS account of the SRS member on the ground that the SRS member is suffering from a terminal illness or disease, then an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)(g):where Ais the amount of the withdrawal; andBis the amount determined under subsection (9A).”;

by deleting paragraph (c) of subsection (8) and substituting the following paragraph:“(c)the closure of the SRS account of the SRS member —

on or after the date the SRS member attains the prescribed minimum retirement age prevailing at the time the SRS member makes the first contribution to the SRS account; or

on or after the date the SRS member becomes physically or mentally incapacitated from ever continuing in any employment, becomes mentally disordered and incapable of managing himself or his affairs, or begins to suffer from a terminal illness or disease.”; and

by deleting subsection (9) and substituting the following subsections:“(9) When an SRS member dies, any sum standing in the SRS account of the SRS member is treated as withdrawn on the date of death, and an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)(g):where Ais the amount treated as withdrawn; andBis the amount determined under subsection (9A).(9A) For the purposes of subsections (3G) and (9), the amount B referred to in those subsections is —where Cis —

if the SRS member made a withdrawal under subsection (3)(b) or (c) (not being a withdrawal under subsection (3G)) in any year before the relevant year, the total number of years (a part of a year being treated as a full year) in the period —

beginning with the year in which the SRS member made the first such withdrawal; and (ii)ending with the year immediately before the relevant year, or, if the first year and the last year in the period are (or are part of) the same year, one; or (b)if the SRS member made his first withdrawal under subsection (3)(b) or (c) (not being a withdrawal under subsection (3G)) in the relevant year, or did not make any such withdrawal, zero; andDis the lower of —

$40,000; and (b)the sum of the following withdrawals made in the relevant year (which is not a withdrawal under subsection (3G)): (i)every withdrawal made under subsection (3)(b); (ii)every withdrawal made under subsection (3)(c).(9B) In subsection (9A), “relevant year” means —

the year in which the SRS member makes the withdrawal under subsection (3G); or

the year of death of the SRS member,as the case may be.”.