WFT » Topics » Information Reporting and Backup Withholding

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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CONSULT HIS OR HER TAX ADVISOR AS TO THE PARTICULAR CONSEQUENCES THAT MAY APPLY TO SUCH SHAREHOLDER.
 

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