XLA or SCF from Mass. to Burmuda Message Board

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Technology Stocks : XLA or SCF from Mass. to Burmuda

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To: RockyBalboa who wrote (774)	12/12/2000 7:52:02 AM
From: Mama Bear	Read Replies (2) of 1116

"The Board of Directors of Xcelera Inc. reiterated its intention to declare a special dividend to shareholders to address income taxes, if any, that may be due by a U.S. shareholder as a result of Xcelera's potential classification as a foreign personal holding company for the taxable year ending December 31, 2000. " Interesting. Won't such a dividend also be taxable? Perhaps it can be classified as a return of capital. Won't it cause the share price to fall an equal amount? If I owned $10000 of XLA and owed $3000 in tax I could sell $3000 to pay the tax. The company may issue a dividend of $3000 on every $10000 only to see it's shareholders socked with a tax on the dividend as well as having the same number of shares be worth $7000 after. Regards, Barb

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