[edited] @Saifun - TAX
I think this will get complicated -> I bite me, that I didn't
thought about TAXES before I bought my SFUN shares.
Look here:
saifun.com
2 portions:
- dividend portion (1)
- cash distribution portion (2)
(1)
Dividend Portion.
The Cash Distribution Ruling requires Saifun to withhold from the Dividend portion of the Cash
Distribution the maximum Israeli withholding tax rate, which is equal to 20% of the Dividend portion of the
Cash Distribution paid to the Saifun Shareholders, or approximately $0.17 per share.4 In the event that a Saifun
Shareholder believes that a lower withholding tax rate should apply pursuant to an applicable treaty between
such Saifun Shareholder’s state of residency and the State of Israel, such Saifun Shareholder must make a refund
claim directly to the ITA. Saifun Shareholders are urged to consult with their tax advisors to determine the
availability of a tax refund.
I'm not a tax expert and not a native english person, but
when I understand this correctly, it seems to me, that these
0,17$ are withhold also when we make a statement. So it seems
to me (imho), that you have to do a "tough job" to get this
money back - if possible ever.
(2)
If no withholding exemption is
established by the applicable dates set forth herein, such retained amounts will be paid by the Trustee to the ITA
in NIS on June 11, 2008,
...
For any Saifun
Shareholder who is able to timely claim a tax withholding exemption, the amounts so retained by the Trustee
from the Return of Capital portion of the Cash Distribution otherwise payable to such Saifun Shareholder will be
converted back into U.S. Dollars at the then-applicable rate and paid to such Saifun Shareholder in U.S. Dollars.
...
With respect to the Return of Capital portion of the Cash Distribution, a Saifun Shareholder who (a) is a
resident of a Treaty Country and (b) provides a Residency Certificate and Tax Ruling Declaration no later than
May 28, 2008, will be subject to Israeli withholding requirements in accordance with the terms of their Treaty
Country’s Tax Treaty, which in many instances, including, generally, with respect to the U.S., Canada, and the
U.K., would mean a full exemption from Israeli withholding with respect to such Saifun Shareholder’s
proportional entitlement to the Return of Capital portion of the Cash Distribution. Following receipt of such
documents from a Saifun Shareholder and the approval of such documentation, such Saifun Shareholder shall be
entitled to a refund of the withheld tax amount or any portion thereof, as applicable.
...
TAX REFUND
Saifun Shareholders who have had a portion of their Merger Consideration withheld by Saifun or by the
Trustee or which have had a tax advance paid on their account may be eligible for a refund of all, or a portion, of
such amounts withheld by filing a tax return with the ITA. Saifun Shareholders who are eligible for a tax refund
will need to establish with appropriate documentation the number of Saifun Shares held by them, the amounts
withheld with respect to those shares and pertinent information regarding the circumstances entitling such Saifun
Shareholders to a refund. Saifun Shareholders are urged to consult with their tax advisors to determine the
availability of a tax refund from the ITA.
...
-> go to page 5
Thus your brokerage account, absent instructions from your broker, will be automatically credited
with (i) 0.7238 of a share of Spansion Stock and (ii) approximately $4.36 in cash for each Saifun Share you
owned as of Closing without any action on your part.
-> 6,20 - 4,36 = 1,84$ + currency variation
From Dennis Morley (SI Board here):
and then $1.96017/sh sfun was withheld for foreign tax.
-> seems like they INSTANTLY withhold these taxes and you
have to claim "something" to get it back. I will see, if they do
the same here in germany. -> When you ask me a very strange
behaviour.
NOONE would buy SFUN shares under these condition -> we should
be stupid, when we would know, such things will happen.
Seems here lies the answer:
If you provide the foregoing documents by Wednesday, May 28, 2008: (A) the amount to be withheld
as Israeli tax from the Return of Capital Maximum Withholding Amount will be calculated based upon the
applicable withholding rate in the Tax Treaty for your Treaty Country (which for many countries, including the
U.S., Canada and the U.K., is equal to 0%), or in accordance with your ITA Certificate, as applicable; and (B)
you will be entitled to receive a refund from the Trustee of the difference between the Return of Capital
Maximum Withholding Amount and your calculated withholding amount (which, if you are a resident of the
U.S., Canada and the U.K., will result in the return of the entire principal amount of Return of Capital
Maximum Withholding Amount, subject, however, to the risk of exchange rate fluctuations between NIS and
U.S. Dollars as detailed above).
edit:
If you DO NOT provide the foregoing documents by Wednesday, May 28, 2008: The Trustee will pay
all amounts withheld with respect to your Saifun Shares to the ITA, you will not be entitled a refund of any
portion of the Return of Capital Maximum Withholding Amount from the Trustee, ...
-> Saifun/Spansion pays you 6,2$ per SFUN share but a "third
person" (Trustee) holds back 1,8x-1,9x $ per share on a
virtual account. If you send back all the papers, the Trustee
we pay the rest of the money to you, otherwise, this money
will go to the ITA. Seems like I finally got it.
BUGGI |
