The U.S. federal income tax treatment of any distribution made by Tyco depends on the application of U.S. federal income tax law. Although a determination cannot be made in advance, distributions made by Tyco to U.S. shareholders generally constitute “dividends” for U.S. federal income tax purposes (notwithstanding their treatment for Swiss withholding tax purposes), and that they are reported as such to the company's shareholders and to the IRS, in accordance with, and as required by, U.S. federal income tax laws.
Tyco is a “qualified foreign corporation” for U.S. federal income tax purposes. Therefore, its dividends generally are eligible for “qualified dividend” treatment. Whether dividends paid by Tyco in fact constitute “qualified dividends” to any shareholder depends on that shareholder’s specific circumstances, including the shareholder’s holding period for the Tyco shares on which such dividends are received. U.S. shareholders are advised to consult their own tax advisors concerning the treatment of dividends paid by Tyco as “qualified dividends” in their particular circumstances.
To comply with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained herein, unless specifically stated otherwise, is not intended or written to be used, and cannot be used, for the purposes of (i) avoiding penalties under the Internal Revenue Code of 1986, as amended, or (ii) promoting, marketing, or recommending to another party any transaction or matter herein.
IMPORTANT NOTE: Any tax information provided herein, including the answer to the above question is provided for your information only and does not constitute tax advice provided by Tyco. The information is accurate as of the date of it first publication (April 23, 2010) and we undertake no duty to update this information for subsequent changes in tax law or for any other reason. Please consult your own tax advisor for tax advice related to your ownership of Tyco common shares.