US tax ruling goes Telecom's way
IRS decision anticipated in the company's "demerger" Scheme Booklet goes the company's way.
Telecom has received a private letter from the United States Internal Revenue Service (IRS) stating its pending "demerger" will qualify as a tax-free distribution to US holders of Telecom shares or Telecom American Depositary Shares (ADS) for US federal income tax purposes.
In its Scheme Booklet distributed to bondholders (whose votes will be revealed Friday) and shareholders, Telecom said it had applied for tax-free status from the IRS, but had yet to receive a response.
Telecom will remain listed on the NZX, ASX and, via its ADS, on the NYSE if bondholders and shareholders (whose votes will be counted October 26) approve its split (a condition of the company's Crown Fibre contract with the government.
The spun-off "New Chorus" will be listed on the NZX and ASX, with no American Depositary Shares.
NBR staff
Thu, 29 Sep 2011
Thu, 29 Sep 2011
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US tax ruling goes Telecom's way
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