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dole food private_tax_info


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dole food private_tax_info

  1. 1. DOLE FOOD COMPANY, INC. One Dole Drive Westlake Village, California 91362 January 2, 2004 IMPORTANT TAX INFORMATION REGARDING THE “PRIVATIZATION” OF DOLE FOOD COMPANY, INC. The purpose of this notice is to provide important information on how to determine your tax basis in the shares of Dole Food Company, Inc. for which you received cash in connection with the “going private” transaction. This discussion is for general information only and does not purport to consider all aspects of federal income taxa tion that might be relevant to the beneficial holders of Dole common stock. This discussion applies only to beneficial holders of Dole common stock in whose hands shares are capital assets within the meaning of Section 1221 of the Internal Revenue Code of 1986 and may not apply to beneficial holders who acquired their shares pursuant to the exercise of employee stock option or other compensation arrangements with Dole or who are subject to special tax treatment under the Internal Revenue Code of 1986. In addition, this discussion does not discuss the federal income tax consequences to a beneficial holder of Dole common stock who, for United States federal income tax purposes, is a non-resident alien individual, a foreign corporation, a foreign partnership or a foreign estate or trust, nor does it consider the effect of any state, local or foreign tax laws. The receipt of cash for Dole common stock pursuant to the merger is a taxable transaction for United States federal income tax purposes. In general, a beneficial holder who received cash in exchange for shares in the “going private” transaction will recognize gain or loss for federal income tax purposes equal to the difference, if any, between the amount of cash received and the beneficial holder’s adjusted tax basis in the shares surrendered for cash. Gain or loss will be determined separately for each block of shares (i.e., shares acquired at the same cost in a single transaction) surrendered for cash. Such gain or loss will be long-term capital gain or loss provided that the beneficial holder’s holding period for such shares was more than 12 months at the time of the closing (March 28, 2003) of the “going private” transaction. Receipt of such cash may also be a taxable transaction under applicable state, local and foreign tax laws. Because individual circumstances may differ, you should consult your own tax advisor with respect to your particular circumstances and with respect to the effects of any state, local or foreign tax laws to which you may be subject.