Print Page  Close Window

SEC Filings

S-1/A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1/A on 11/04/1999
Entire Document
 
<PAGE>   238
 
     Currently, the applicable United States Treasury regulations presume,
absent actual knowledge to the contrary, that dividends paid to an address in a
foreign country are paid to a resident of such country for purposes of the 30%
withholding tax discussed above. However, recently finalized United States
Treasury regulations provide that in the case of dividends paid after December
31, 2000, United States backup withholding tax at a 31% rate will be imposed on
dividends paid to non-U.S. holders if the certification or documentary evidence
procedures and requirements set forth in such regulations are not satisfied
directly or through an intermediary. Further, in order to claim the benefit of
an applicable income tax treaty rate for dividends paid after December 31, 2000,
a non-U.S. holder must comply with certification requirements set forth in the
recently finalized United States Treasury regulations. The final United States
Treasury regulations also provide special rules for dividend payments made to
foreign intermediaries, United States or foreign wholly owned entities that are
disregarded for United States federal income tax purposes and entities that are
treated as fiscally transparent in the United States, the applicable income tax
treaty jurisdiction, or both. Prospective investors should consult with their
own tax advisors concerning the effect, if any, of these tax regulations and the
recent legislation on an investment in the Class A common stock.
 
     A non-U.S. holder of Class A common stock that is eligible for a reduced
rate of United States withholding tax pursuant to an income tax treaty may
obtain a refund of any excess amounts withheld by filing an appropriate claim
for a refund with the Internal Revenue Service.
 
     Dividends paid to a non-U.S. holder are taxed generally on a net income
basis at regular graduated rates where such dividends are either:
 
         (1) effectively connected with the conduct of a trade or business of
     such holder in the United States or
 
         (2) attributable to a permanent establishment of such holder in the
     United States.
 
The 30% withholding tax is not applicable to the payment of dividends if the
non-U.S. Holder files Form 4224 or any successor form with the payor, or, in the
case of dividends paid after December 31, 2000, such holder provides its United
States taxpayer identification number to the payor. In the case of a non-U.S.
holder that is a corporation, such income may also be subject to an additional
"branch profits tax" at a 30% rate or such lower rate as may be specified by an
applicable income tax treaty.
 
GAIN ON DISPOSITION OF CLASS A COMMON STOCK
 
     A non-U.S. holder generally will not have to comply with United States
federal income or withholding tax requirements in respect of gain recognized on
a disposition of Class A common stock unless:
 
         (1) the gain is effectively connected with the conduct of a trade or
     business of the non-U.S. holder within the United States or of a
     partnership, trust or estate in which the non-U.S. holder is a partner or
     beneficiary within the United States,
 
         (2) the gain is attributable to a permanent establishment of the
     non-U.S. holder within the United States,
 
                                       235