ATHENS, Greece, March 15 /PRNewswire-FirstCall/ -- TOP Tankers said today that its transfer agent, Computershare, will distribute revised Form 1099-DIV for 2006 reflecting the portion of the dividends received by shareholders during 2006 that are dividends and the portion that should be treated as a return of capital. In the event that shares are held by a broker in street name, shareholders should contact their broker in regards to the revised Form 1099-DIV for 2006.
A distribution by a corporation to its shareholders is treated as a dividend for US federal income tax purposes to the extent it comes from current and accumulated earnings and profits ("E&P") and as a return of capital to the extent that it exceeds E&P.
In 2006 TOP Tankers paid a total of $217.5 million in dividends. Of this amount, $86.7 million was distributed from current and accumulated earnings and $130.8 million was distributed as a return of capital.
About TOP Tankers Inc
TOP Tankers Inc is an international provider of worldwide seaborne crude oil and petroleum products transportation services. The Company operates a fleet of 24 tankers, consisting of 13 double-hull Suezmax tankers and 11 double-hull Handymax tankers, with a total carrying capacity of approximately 2.5 million dwt, of which 88.2% are sister ships. Fifteen of the Company's 24 tankers are on time charter contracts with an average term of over three years with all but three of the time charters including profit sharing agreements.
