THE LIFE OFFICES' ASSOCIATION OF SOUTH AFRICA ASSOCIATION INCORPORATED UNDER SECTION 21
3 June 2004

To :ANNA ROSENBERG
From: Ms CHRISTELL BRODRICK

Dear Ms Brodrick

DRAFT TAXATION LAWS AMENDMENT BILL [B- 2004] AND SECTION 23(M)

We refer to the above draft Bill and would like to comment as follows.

1. Section 20
We welcome the introduction of the new paragraph 2(4)(c) of the Fourth Schedule Should the employer however not be prepared to exercise the option referred to in this paragraph, taxpayers (especially "SITE only" taxpayers) should be able to approach the Commissioner to amend the amount of SITE payable. We suggest that this be effected by means of a suitable amendment of paragraph 11B(4) of the Fourth Schedule.

2. Section 64
Section 64 of the Amendment Bill refers only to the operation date of subsection (l)(b) of the Revenue Laws Amendment Act 45 of 2003. We recommend that the date of operation of subsection 1 (a) of that Act come into operation on 1 March 2002

We recommend that section 64 of the current Draft Taxation Laws Amendment Bill should read as follows:
Amendment of section 58 of Act 45 of 2003

64. Section 38 of the Revenue Laws Amendment Act, 2003 , is hereby amended by the substitution for subsection (2) of the following subsection:(2)
Subsection (1) (a) shall be deemed to have come into operation on 1 March
2002. Subsection (l)(b) shall come into operation on the date of promulgation and shall apply in respect of any asset acquired on or after that date."

Yours faithfully

ANNA ROSENBERG
Legal Adviser