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This excerpt taken from the WFT DEF 14A filed Jan 15, 2009. Information
Reporting and Backup Withholding
U.S. holders that own at least five percent (of total
voting power or total value) of Weatherford-Bermuda immediately
before, and/or at least five percent (of total voting power or
total value) of Weatherford-Switzerland immediately after, the
Transaction will be required to file certain Section 368(a)
reorganization
and/or
Section 351 statements. U.S. holders may have a higher
percentage of voting power than value of their
Weatherford-Switzerland shares as a result of voting
restrictions on Weatherford-Switzerland shares under Swiss law.
See “Description of Weatherford-Switzerland
Shares — Voting.” Other information reporting
could also apply to the Transaction. Shareholders of
Weatherford-Bermuda should consult their own tax advisor about
the information reporting requirements that could be applicable
to the exchange of Weatherford-Bermuda shares for
Weatherford-Switzerland shares in the Transaction.
Dividends on Weatherford-Switzerland shares paid within the
United States or through certain
U.S.-related
financial intermediaries are subject to information reporting
and may be subject to backup withholding (currently at a 28%
rate) unless the holder (1) is a corporation or other
exempt recipient (including generally
non-U.S. holders
who establish such foreign status) or (2) provides a
taxpayer identification number and satisfies certain
certification requirements. Information reporting requirements
and backup withholding may also apply to the payment of proceeds
from a sale of Weatherford-Switzerland shares within the United
States. Any amounts withheld under the backup withholding rules
may be allowed as a refund or a credit against the holder’s
U.S. federal income tax liability, provided that the holder
furnishes certain required information to the IRS. Holders
should consult their tax advisor regarding the application of
information reporting and backup withholding to their particular
situations.
If a U.S. holder of Weatherford-Switzerland shares does not
provide us (or our paying agent) with the holder’s correct
taxpayer identification number or other required information,
the holder may be subject to penalties imposed by the IRS.
THE U.S. FEDERAL INCOME TAX CONSEQUENCES SUMMARIZED ABOVE
ARE FOR GENERAL INFORMATION ONLY. EACH WEATHERFORD-BERMUDA
SHAREHOLDER SHOULD
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