stock to or through a non-United States office of a non-United States broker
will not be subject to backup withholding or information reporting unless the
non-United States broker has a connection to the United States as specified by
United States federal tax law.
In the case of the payment of proceeds from the disposition of Class A
common stock effected by a foreign office of a broker that is a United States
person or a "United States related person," existing regulations require
information reporting on the payment unless:
(1) the broker receives a statement from the owner, signed under penalty of
perjury, certifying its non-United States status;
(2) the broker has documentary evidence in its files as to the non-U.S.
holder's foreign status and the broker has no actual knowledge to the
contrary, and other United States federal tax law conditions are met;
(3) the beneficial owner otherwise establishes an exemption.
For this purpose, a "U.S. related person" is either:
(1) a "controlled foreign corporation" for United States federal income tax
(2) a foreign person 50% or more of whose gross income from all sources for
the three-year period ending with the close of its taxable year
preceding the payment is derived from activities that are effectively
connected with the conduct of a United States trade or business.
After December 31, 2000, the regulations under the Internal Revenue Code
will impose information reporting and backup withholding on payments of the
gross proceeds from the sale or redemption of Class A common stock that is
effected through foreign offices of brokers having any of a broader class of
specified connections with the United States. Such information reporting and
backup withholding may be avoided, however, if the applicable Internal Revenue
Service certification requirements are complied with. Prospective investors
should consult with their own tax advisors regarding the regulations under the
Internal Revenue Code and in particular with respect to whether the use of a
particular broker would subject the investor to these rules.
Any amounts withheld under the backup withholding rules from a payment to a
non-U.S. holder will be either refunded or credited against the holder's United
States federal tax liability, provided sufficient information is furnished to
the Internal Revenue Service.