LensCrafters 2005 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2005 LensCrafters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

> 74 | ANNUAL REPORT 2005
is not related to the conduct of a business, and if these persons do not hold a “qualified” shareholding.
The 12.5% final substitute tax will not be applied only if they timely declare that they satisfy the relevant
requirements (eg. qualified shareholding or related to the conduct of a business).
This substitute tax will be levied by the Italian authorized intermediary that participates in the Monte Titoli
system and with which the securities are deposited, as well as by non-Italian centralized deposit
system participating in the Monte Titoli system (directly or through a non-Italian deposit system
participating in the Monte Titoli system), through a fiscal representative to be appointed in Italy.
Italian resident individuals who timely declare that they hold a qualified shareholding or related to the
conduct of a business, will receive the gross amounts of dividends paid and include dividends in their
world wide taxable income, subject to the ordinary income tax rules. The dividend paid to other
subjects different from the above mentioned individuals, who are resident in Italy for tax purposes,
including those companies subject to IRES/IRPEF and foreign companies with permanent
establishment in Italy to which the shares are effectively connected, investment funds, pension funds,
real estate investment funds and subjects excluded from income tax pursuant to Art. 74 of Presidential
Decree No. 917/86, are not subject to substitute tax. Dividends paid to entities subject to IRES/IRPEF
different from individuals holding a non qualified shareholding or not related to the conduct of a
business, will be subject to the ordinary income tax rules.
Italian law provides for a 27% final substitute tax rate on dividends paid to Italian residents who are
exempt from corporate income tax.
Dividend paid to beneficial owners who are not Italian resident and do not have a permanent
establishment in Italy to which the shares are effectively connected, are subject to 27% substitute tax
rate. However reduced rates (normally 15%) of substitute tax on dividends apply to non-residential
beneficial owners, who are entitled to and comply with procedures for claiming benefits under an
applicable income tax treaty entered into by Italy. Under the currently applicable Italy-U.S. Treaty, an
Italian substitute tax at a reduced rate of 15% will generally apply to dividends paid by Luxottica Group
to a U.S. resident entitled to treaty benefits who complies with the procedures for claiming such
benefits, provided the dividends are not effectively connected with a permanent establishment in Italy
through which the U.S. resident carries on a business or with a fixed base in Italy through which the
U.S. resident performs independent personal services.
The substitute tax regime does not apply if ordinary shares representing a “non-qualified” interest in
Luxottica Group are held by a shareholder in a discretionary investment portfolio managed by an
authorized professional intermediary, and the shareholder elects to be taxed at a flat rate of 12.5% on
the appreciation of the investment portfolio accrued at year-end (which appreciation includes any
dividends), pursuant to the so-called discretionary investment portfolio regime - regime del risparmio
gestito.
TAX REGIME - HOLDERS OF ADS
Dividends paid to beneficial owners who are not Italian residents and do not have a permanent
establishment in Italy to which the shares or ADSs are effectively connected, are generally subject to a
27.0% substitute tax rate. Accordingly, the amount of the dividends paid to Deutsche Bank Trust
Company Americas, as depositary of the Ordinary Shares and the issuer of the ADSs, through
Deutsche Bank S.p.A, as custodian under the Deposit Agreement, will be subject to such Italian
substitute tax. Therefore, the amount of the dividends that the holders of ADS will initially receive will be
net of such substitute tax.
All owners of ADSs will be given the opportunity to submit to Deutsche Bank Trust Company Americas,