Tax information is provided only for the general use of security holders, and is a summary only. For tax planning or professional advice, please consult a qualified professional. For more information, please consult Student Transportation Inc’s Final Prospectus.
Canadian Tax Income
Pursuant to new tax legislation, Canadian resident individuals who receive "eligible dividends" in 2006 and subsequent years will be entitled to an enhanced gross-up and dividend tax credit, resulting in a reduction of income taxes otherwise payable on those dividends. Student Transportation Inc. has designated that all of its dividends paid in 2006 are "eligible dividends" for these purposes.
Student Transportation Inc. also advises that all of its dividends will be designated as "eligible dividends" for 2007 and subsequent years, unless indicated otherwise.
U.S. Income Tax
Unless a non-U.S. holder provides appropriate documentation establishing entitlement to a reduction or elimination of U.S. withholding tax, a U.S. withholding tax will be assessed on interest payments paid on the convertible subordinated notes to that non-U.S. holder. Student Transportation Inc also advises that all of its dividends will be designated as "eligible dividends" for 2007 and subsequent years, unless indicated otherwise.