Clause 38

by deleting the words “subsection (2)” in subsection (1) and substituting the words “subsections (2) and (2A)”;

by inserting, immediately after subsection (2), the following subsections:“(2A) For the purposes of subsection (1)(a), where a withdrawal of all the funds standing in the SRS account of an SRS member is made on the ground in section 10L(3G), section 45 applies only in relation to an amount determined in the following manner:where Ais the amount of funds withdrawn from the SRS account on that ground;Bis the total value of the investment that is deducted from the balance in the SRS account (if any) on that ground; andCis the amount of the SRS member’s income chargeable to tax under section 10(1)(g) as determined under section 10L(3G).(2B) In subsection (2A) —

the reference to a deduction of an investment from the balance in an SRS account is to be construed in accordance with section 10L(3F); and

the value of such investment is determined in accordance with the regulations made under section 10L(11).”;

by deleting the words “specified in section 43(1)(b)” wherever they appear in subsections (3)(a) and (5), and substituting in each case, the words “of 22%”; and

by inserting, immediately after subsection (5), the following subsection:“(6) To avoid doubt, a reference to a withdrawal from an SRS account in this section is a reference to an actual withdrawal of funds, and excludes a deemed withdrawal of funds under section 10L(3E).”.