National Grid 2008 Annual Report Download - page 274

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 17620
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 68
Description: EXH 2(B).6.1
0/1672.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/672/1*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 17620
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 68 Description: EXH 2(B).6.1
0/1672.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/672/1*
TAXATION
United States Taxation
TO ENSURE COMPLIANCE WITH U.S. TREASURY DEPARTMENT CIRCULAR 230 (“CIRCULAR 230”), HOLDERS OF
INSTRUMENTS ARE HEREBY NOTIFIED THAT: (A) ANY DISCUSSION OF FEDERAL TAX ISSUES IN THIS PROSPECTUS
IS NOT INTENDED OR WRITTEN TO BE RELIED UPON, AND CANNOT BE RELIED UPON, BY HOLDERS OF
INSTRUMENTS FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON HOLDERS OF
INSTRUMENTS UNDER THE INTERNAL REVENUE CODE; (B) SUCH DISCUSSION IS INCLUDED HEREIN BY THE
ISSUER IN CONNECTION WITH THE PROMOTION OR MARKETING (WITHIN THE MEANING OF CIRCULAR 230) BY THE
ISSUER OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN; AND (C) HOLDERS OF INSTRUMENTS SHOULD
SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
* * * * *
Under current U.S. federal income and estate tax law, and subject to the discussion of backup withholdin
g
in the followin
g
section:
68
(a) Payments of principal, original issue discount (“OID”), and interest by the Issuer or any payin
g
a
g
ent to any holder of an
Instrument who is a United States Alien (as defined below) will not be subject to U.S. federal withholdin
g
tax, provided
that, in the case of amounts treated as interest or OID with respect to Instruments with a maturity of more than 183 days,
(i) the amount of the payment is not determined by reference to any receipts, sales or other cash flow, income or profits,
chan
g
e in value of any property of, or dividend or similar payment made by, the Issuer or a person related to the Issuer (a
“Contingent Payment”), (ii) the holder does not actually or constructively own 10 per cent. or more of the total combined
votin
g
power of all classes of stock of the Issuer entitled to vote, (iii) the holder is not for U.S. federal income tax purposes
a controlled forei
g
n corporation related to the Issuer throu
g
h stock ownership, and (iv) the holder is not a bank receivin
g
interest described in Section 881
(
c
)(
3
)(
A
)
of the Internal Revenue Code of 1986, as amended
(
the “Code”
)
.
(b) A United States Alien holder of an Instrument or coupon will not be subject to U.S. federal income tax on any
g
ain or
income realised upon the sale, exchan
g
e, retirement or other disposition of an Instrument or coupon, provided that (i) in
the case of Instruments with a maturity of more than 183 days, the Instruments do not provide for any Contin
g
ent
Payments, and (ii) neither the holder, nor a partner, fiduciary, settler or beneficiary of the holder if the holder is a
partnership or an estate or trust, or a person holdin
g
a power over an estate or trust administered by a fiduciary holder, is
considered as:
(i) bein
g
or havin
g
been present or en
g
a
g
ed in a trade or business in the United States or havin
g
or havin
g
had a
permanent establishment therein;
(ii) having a current or former relationship with the United States, including a relationship as a citizen or resident thereof;
(iii) bein
g
or havin
g
been for U.S. federal income tax purposes a personal holdin
g
company, a passive forei
g
n
investment company, a controlled forei
g
n corporation or a corporation that has accumulated earnin
g
s to avoid U.S.
federal income tax; or