Israel’s Metalink will be characterized under the Internal Revenue Code as a passive foreign investment company (PFIC) for 2002.
Any US person who held Metalink shares at any time during the year 2002 and who did not hold Metalink shares in the year 2001 may mitigate the consequences of Metalink's PFIC status by electing to treat Metalink as a ‘qualified electing fund’ (QEF) under the Internal Revenue Code.
All 2002 shareholders may make a ‘mark-to-market’ election under the Internal Revenue Code. Because both a QEF election and a mark-to-market election may have consequences of their own, all 2002 Shareholders are urged to consult their own tax advisers about the PFIC rules generally and about the advisability, procedure and timing of their making QEF or mark-to-market elections.
Metalink was characterized as a PFIC for 2001. Therefore, any US persons who held Metalink shares at any time during 2001 are urged to consult their own tax advisers about the PFIC rules generally and about the advisability, procedure and timing of their making QEF or mark-to-market elections.
Metalink, a fabless semiconductor company, develops and markets high performance broadband access chip sets used by telecommunications and networking equipment makers. Metalink's silicon solutions enable very high-speed delivery of next generation broadband access over copper infrastructure. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
