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ARTICLE · 04 MAY 2016

Qualified Intermediary News Issue 2016-03

KPMG Luxembourg
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On April 12, 2016, Treasury and the IRS issued proposed regulations regarding deemed distributions of stock and rights to acquire stock (REG-133673-15).

LuxembourgCorporate/Commercial Law
Gérard Laures
Gérard Laures
Frank Stoltz
Frank Stoltz
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DEEMED DISTRIBUTIONS OF STOCK AND RIGHTS TO ACQUIRE STOCK

On April 12, 2016, Treasury and the IRS issued proposed regulations regarding deemed distributions of stock and rights to acquire stock (REG-133673-15). The proposed regulations will affect corporations issuing rights to acquire stock, their shareholders and holders of rights, and withholding agents with respect to deemed distributions. The regulations are intended to:

  • Resolve ambiguities concerning the amount and timing of deemed distributions that are or result from adjustments to rights to acquire stock.
  • Provide additional guidance to withholding agents regarding their withholding and reporting obligations under chapters 3 and 4 with respect to deemed distributions.

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