Ryanair 2011 Annual Report Download - page 121

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2010/11 taxable year. In addition, based on the Company’s audited financial statements and its current
expectations regarding the value and nature of its assets, the sources and nature of its income, and relevant
market data, the Company does not anticipate becoming a PFIC for its 2011/12 taxable year.
Under the U.S.-Ireland Income Tax Treaty currently in effect, in the event the Company were to pay
any dividend, the tax credit attaching to the dividend (as used herein the “Tax Credit”; see “—Irish Tax
Considerations”) generally will be treated as a foreign income tax eligible for credit against such U.S. Holder’s
United States federal income tax liability, subject to generally applicable limitations and conditions. Any such
dividend paid by the Company to such U.S. Holder will constitute income from sources outside the United
States for foreign tax credit purposes, and generally will constitute “passive category” income for such purposes.
Foreign tax credits may not be allowed for withholding taxes imposed in respect of certain short-term
or hedged positions in securities.
U.S. Holders should consult their own tax advisors concerning the implications of these rules in light of
their particular circumstances.
Distributions of Ordinary Shares that are made as part of a pro rata distribution to all stockholders
generally will not be subject to U.S. federal income tax.
Sale or Disposition of Ordinary Shares or ADRs. Gains or losses realized by a U.S. Holder on the sale
or other disposition of ADRs generally will be treated for U.S. federal income tax purposes as capital gains or
losses, which generally will be long-term capital gains or losses if the ADRs have been held for more than one
year. The net amount of long-term capital gain recognized by an individual holder before January 1, 2013
generally is subject to taxation at a maximum rate of 15%. The deductibility of capital losses is subject to
limitations.
Deposits and withdrawals of Ordinary Shares by U.S. Holders in exchange for ADRs will not result in
the realization of gain or loss for U.S. federal income tax purposes.
Non-U.S. Holders. A holder of Ordinary Shares or ADRs that is, with respect to the United States, a
foreign corporation or a nonresident alien individual (a “Non-U.S. Holder”) generally will not be subject to U.S.
federal income or withholding tax on dividends received on such Ordinary Shares or ADRs unless such income
is effectively connected with the conduct by such holder of a trade or business in the United States. A Non-U.S.
Holder of ADRs or Ordinary Shares will not be subject to U.S. federal income tax or withholding tax in respect
of gain realized on the sale or other disposition of Ordinary Shares or ADRs, unless (i) such gain is effectively
connected with the conduct by such holder of a trade or business in the United States or (ii) in the case of gain
realized by an individual Non-U.S. Holder, such Non-U.S. Holder is present in the United States for 183 days or
more in the taxable year of the sale and certain other conditions are met.
DOCUMENTS ON DISPLAY
Copies of Ryanair Holdings’ Articles may be examined at its registered office and principal place of
business at its Corporate Head Office, Dublin Airport, County Dublin, Ireland.
Ryanair Holdings also files reports, including annual reports, periodic reports on Form 6-K and other
information, with the SEC pursuant to the rules and regulations of the SEC that apply to foreign private issuers.
You may read and copy any materials filed with the SEC at its Public Reference Room at 100 F Street, N.E.,
Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330.
Item 11. Quantitative and Qualitative Disclosures About Market Risk
GENERAL
Ryanair is exposed to market risks relating to fluctuations in commodity prices, interest rates and
currency exchange rates. The objective of financial risk management at Ryanair is to minimize the negative