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Were any regulatory or Internal Revenue Service (IRS) approvals required, in the U.S. or elsewhere, to complete the Kraft Spin-off? |
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Why was the Kraft Spin-off called a tax free Spin-off, and what are the tax consequences to Altria's shareholders? |
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As a result of the Kraft Spin-off, how do I calculate the tax basis of my Altria and Kraft stock? |
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Is the Kraft Spin-off tax free for foreign shareholders? |
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Is the Kraft Spin-off tax free for Canadian shareholders? |
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Q:
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Were any regulatory or Internal Revenue Service (IRS) approvals required, in the U.S. or elsewhere, to complete the Kraft Spin-off?
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No governmental approvals were required to complete the Kraft Spin-off.
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Why was the Kraft Spin-off called a tax free Spin-off, and what are the tax consequences to Altria's shareholders? |
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Altria received an opinion from outside legal counsel to the effect that the Kraft Spin-off would be tax free to its shareholders for U.S. federal income tax purposes, except for any cash received in lieu of a fractional share of Kraft stock. You should consult your own tax advisor regarding the particular consequences of the Kraft Spin-off to you, including the applicability and effect of any U.S. federal, state and local and foreign tax laws.
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As a result of the Kraft Spin-off, how do I calculate the tax basis of my Altria and Kraft stock? |
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Altria provided information to enable its U.S. shareholders to calculate the tax basis in both Altria and Kraft shares. This information was posted on our Web site on April 4, 2007.
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Is the Kraft Spin-off tax free for foreign shareholders? |
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Unfortunately, certain non-U.S. jurisdictions may choose to subject this type of corporate reorganization to taxation even though the distribution of Kraft Foods Inc. common shares is not taxable under U.S. federal laws. You should consult your own tax advisor regarding the particular consequences of the Kraft Spin-off to you, including the applicability and effect of any U.S. Federal, state and local and foreign tax laws.
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Is the Kraft Spin-off tax free for Canadian shareholders? |
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Yes. The Canada Revenue Agency (CRA) has determined that the Kraft Spin-off is tax free for Canadian shareholders and has been approved for the purposes of section 86.1 of the Income Tax Act. To view the CRA's decision, please visit the Agency's Web site.
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