Material Tax Consequences for Employees Who are Tax Residents in Canada. The following is a general summary of the material Canadian federal income tax consequences of the exchange of options under the offer for Canadian tax residents. This discussion is based on the Canadian tax laws as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. If you are a resident of another country, the information contained in this summary may not be applicable to you. You are advised to seek appropriate professional advice as to how the tax or other laws in your country apply to your specific situation.
Material Tax Consequences for Employees Who are Tax Residents in France. The following is a general summary of the income and social insurance tax consequences of the exchange of options under the offer for French tax residents. This discussion is based on French tax law as of the date of the offer. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. If you are a citizen or resident of another country, the information contained in this summary may not be applicable to you. You are advised to seek appropriate professional advice as to how the tax or other laws in your country apply to your specific situation.
Material Tax Consequences for Employees Who are Tax Residents in Japan. The following is a general summary of the tax consequences of the exchange of options under the offer for Japanese tax residents. This discussion is based on Japanese tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of options holders. Accordingly, we recommend that you consult your own tax advisor with respect to the Japanese and foreign tax consequences of participating in the offer. If you are a citizen or resident of another country, the information contained in this summary may not be applicable to you. You are advised to seek appropriate professional advice as to how the tax or other laws in your country apply to your specific situation.
Material Tax Consequences. The statements made in the Disclosure Package and the Final Prospectus under the caption “Material Tax Consequences”, insofar as such statements refer to statements of law or legal conclusions, fairly summarize the matters referred to therein in all material respects, subject to the qualifications and assumptions stated therein.
Material Tax Consequences for Employees Who are Tax Residents in Germany. The following is a general summary of the tax consequences of the exchange of options under the offer for German tax residents. This discussion is based on the local tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. You will not be subject to tax when the new option is granted. When you exercise the option, you will be subject to income tax on the difference between the fair market value of the shares on the date of exercise and the exercise price. The income recognized would be compensation to you. When you sell the shares, you will not be subject to tax on any additional gain provided that: (i) you have held the stock for more than 12 months; (ii) you have not, during the last five years, held 10% or more of the stated capital of E.piphany; and (iii) the stock is not held as a business asset. Effective January 1, 2002, the 10% limit will be lowered to 1% such that in order to satisfy the foregoing conditions, you cannot have held 1% of more of the state capital of E.piphany. Consequently, you normally will not be subject to tax at the time of sale on the additional gains if you hold the shares for more than 12 months.
Material Tax Consequences for Employees Who are Tax Residents in Hong Kong. The following is a general summary of the tax consequences of the exchange of options under the offer for Hong Kong tax residents. This discussion is based on Hong Kong tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. You will not be subject to tax when the new option is granted. When you exercise the option, you will be subject on tax on the difference between the fair market value of the shares on the date of exercise and the exercise price. You will not be subject to tax when you sell shares.
Material Tax Consequences for Employees Who are Tax Residents in Singapore. The following is a general summary of the tax consequences of the exchange of options under the offer for Singapore tax residents. This discussion is based on Singapore tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. You will not be subject to tax when the new option is granted. When you exercise the option, you will be subject to income tax on the difference between the fair market value of
Material Tax Consequences for Employees Who are Tax Residents in ---------------------------------------------------------------- Japan. ----- The following is a general summary of the tax consequences of the exchange of options under the offer for Japanese tax residents. This discussion is based on Japanese tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. You should be sure to consult with your personal tax advisor to discuss the tax consequences which may be particular to you. You will not be subject to tax when the new option is granted. When you exercise the option, you will be subject to income tax on the difference between the fair market value of the shares on the date of exercise and the exercise price. Your income will likely be treated as "remuneration income" and will be taxed at your marginal tax rate. When you sell the shares, you will be subject to tax at a flat rate of 26% (i.e., a 20% national income tax and a 6% local inhabitants tax). If you sell your shares through an authorized stockbroker or bank in Japan and submit an election return form, you may elect to have the broker withhold 1.05% of the total amount received (regardless of the gain) from selling your shares. If you make this election, the deemed gain will be 5.25% of the proceeds from the sale of the shares. The deemed gain will only be subject to the 20% national income tax; the 6% local inhabitants tax would not apply. Please note that, although this 1.05% taxation method was scheduled to be abolished as of April 1, 2001 under the 2000 tax legislation, it was extended until April 1, 2003. Therefore, you may elect to be taxed at 1.05% of the total proceeds until March 31, 2003. Please consult with your personal tax advisor for additional information regarding the tax treatment of options in Japan.
Material Tax Consequences for Employees Who are Tax Residents in Japan. The following is a general summary of the tax consequences of the exchange of options under the offer for Japanese tax residents. This discussion is based on Japanese tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of options holders. You will not be subject to tax when the new option is granted. When you exercise the option, you will be subject to income tax on the difference between the fair market value of the shares on the date of exercise and the exercise price. Your income will likely be treated as "remuneration income" and will be taxed at your marginal tax rate. When you sell the shares, you will be subject to tax at a flat rate of 26% (i.e., 20% national income tax and a 6% local inhabitants tax). If you sell your shares through an authorized stockbroker or bank in Japan and submit an election return form, you may elect to have the broker withhold 1.05% of the total amount received (regardless of the gain) from selling your shares. If you make this election, the deemed gain will be 5.25% of the proceeds from the sale of the shares. The deemed gain will only be subject to the 20% national income tax, the 6% local inhabitants tax would not apply. Please note that, although this 1.05% taxation method was schedule to be abolished as of 1 April 2001 under the 2000 tax legislation, it is predicted that the abolishment might be postponed.
Material Tax Consequences for Employees who are Tax Residents in the United Kingdom. The following is a general summary of the income tax and NIC consequences of the exchange of options pursuant to the offer for U.K. tax residents. This discussion is based on the U.K. tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. The original options granted to you by E.pixxxxx xxxe granted under a non-approved stock option plan. With a non-approved stock option, income tax liability arises on the exercise of the option based on the difference between the fair market value of the shares on the date of exercise and the exercise price. In addition, a liability to pay the employee's NICs arises on the gain realized at exercise, calculated effectively in the same manner as for income tax, if your earnings do not already exceed the maximum limit for NIC purposes. When you sell your shares, you may be subject to capital gains tax. The new option is intended to be granted partially under an Inland Revenue approved share scheme and partially under an unapproved share scheme but with a joint election in respect of the secondary NIC requirement. The tax implication for the new option will be significantly different from the original option. Inland Revenue Approved Share Scheme. A portion of the new option will be made under an Inland Revenue Approved Share Scheme, which provides for an option grant of shares with a market value of up to L30,000 (converted from U.S. dollars to sterling on the date of grant). Taxes typically due on the approved options at the time of exercise (i.e., the difference between the fair market value of the shares on the date of exercise and the exercise price) may be deferred until the time of sale (when capital gains treatment may apply.) To qualify for tax relief at the time of exercise, you must not exercise the option within three years of the grant date or within three years of the exercise of an option that benefited from preferred tax treatment. The exercise of the approved option must be made in accordance with the rules of the stock option plan and while the stock option plan retains formal Inland Revenue approval. If you
