LensCrafters 2004 Annual Report Download - page 78

PROPOSED DIVIDEND AND RELATED TAX REGIME
77
with the procedure set forth by it, the documentation
attesting their residence for tax purposes in Italy or in
countries which have entered into tax treaties with
Italy, pursuant to which reduced/NIL tax rates might
become directly applicable. Concurrently with the
delivery of the Proxy Statement, the Depositary has
mailed to all ADS holders a document and necessary
forms setting forth the detailed procedure to be used
by ADS holders for the purpose of obtaining the direct
application of the reduced/NIL tax rate.
All ADS holders that are Italian residents for tax
purposes, should deliver by July 5, 2005 to The Bank
of New York the documentation, dated before June
23, 2005, attesting the tax regime applicable (Form A
to G “Dichiarazione beneficiario dividendo”).
Also ADS holders, that are not Italian residents for tax
purposes, should deliver by July 5, 2005 to The Bank
of New York the documentation, signed before June
23, 2005, attesting their residence for tax purposes in
countries which have entered into tax treaties with Italy,
pursuant to which reduced tax rates might become
directly applicable (Form 8802 for U.S. residents, Form
A-4 for residents of other countries “Tax relief form for
dividends for non-U.S. resident holders”).
As soon as the documentation is delivered by the
Bank of New York to UniCredito Italiano, such bank
shall endeavor to effect repayment of the entire 27%
withheld or the balance between the 27% withheld at
the time of payment and the rate actually applicable to
the ADS holder as the case maybe. By way of
example, Italy and United States (as well as many
other countries) are parties to a tax treaty pursuant to
which the rate of the tax applicable to dividends paid
by an Italian resident company to a U.S. resident
entitled to the treaty may be reduced to 15%.
Therefore, U.S. resident ADS holders have the
opportunity of being repaid a further 12% of the gross
dividend, that is the difference between the 27%
withheld at the time of payment of the dividend and
the 15% substitute tax provided for by the Italy - U.S.
tax treaty.
In the past many ADS holders have been unable to
provide the required certificates within the deadline,
because the tax authorities can take two months or
more in releasing such documents. Therefore the
company advises you, should you expect to be a
holder of ADSs of record on June 22, 2005 and are
interested in implementing the procedure to obtain
the application of the reduced substitute tax rate, to
start such procedure well in advance by completing
the appropriate form (Form A to G for Italian
residents, Form 8802 for U.S. residents, Form A-4
for residents of other countries), which needs to be
signed, for non-Italian residents only, by the
relevant Tax Authority before June 23, 2005. The
procedure established by The Bank of New York
and UniCredito Italiano contemplates that, once the
ADS holder has delivered the proper
documentation to The Bank of New York, the latter
will make it available to UniCredito Italiano and
consequently the additional dividend amount will be
payable to the ADS holders.
Please note that in order for an ADS holder to take
advantage of the accelerated tax refund (Quick
Refund), the certification by the respective Tax
Authority must be dated before June 23, 2005 (the
dividend payable date in Euro) and The Bank of
New York should receive the certification on or
before July 5, 2005.
Luxottica Group recommends to all ADS holders
who are interested in taking advantage of such an
opportunity, to request more detailed information as
to the exact procedure to be followed from The
Bank of New York (ADR Department, telephone + 1
[phone]; fax + 1(212) 571-3050, attn. Bob
Kellett) or directly from the Company’s headquarters
in Italy (Investor Relations Department, telephone
+ 39 (0437) 644256; fax + 39 (0437) 63840).
ADS holders are further advised that, once the
amounts withheld are paid to the Italian Tax
Authorities, ADS holders entitled to the reduced tax
rate may only apply to the Italian Tax Authorities to
receive the reimbursement of the excess tax applied
to the dividends received from Luxottica Group. Such
procedure customarily takes years before the
reimbursement is actually made. Therefore the
above-mentioned procedure, for direct application of
the reduced withholding rate was established by
Luxottica Group in the best interest of its
shareholders.