For important U.S. Federal Income Tax Information Related to the Separation of CDK Global, Inc. from Automatic Data Processing, Inc., please click here
To access IRS Form 8937, please click here
Notice to Canadian Shareholders
For Canadian shareholders of Automatic Data Processing, Inc. ("ADP") who received shares of CDK Global, Inc. ("CDK") in the spin-off that occurred on October 1, 2014, ADP received notice from the Canada Revenue Agency ("CRA") on January 15, 2015 that the spin-off distribution meets the requirements for the favorable tax treatment provided for in section 86.1 of the Income Tax Act (Canada). In general, where a Canadian shareholder of a foreign company receives a distribution of shares ("spin-off shares") from the company as a result of an eligible corporate reorganization ("spin-off'), section 86.1 of the Income Tax Act (Canada) may permit such a spin-off share distribution to occur on a rollover basis to the shareholder (e.g., taxation of any gains is deferred), provided the company provides certain information to the CRA and the shareholder complies with certain filing requirements specified in section 86.1. The CRA has published on its website the fact that the CDK spin-off has been approved for purposes of section 86.1 of the Income Tax Act. Therefore, Canadian shareholders are entitled to make the election specified under 86.1 in respect of the distribution. This election must be made with the shareholder's tax return for the taxation year in which the distribution occurred, and certain specific information must accompany the election. ADP is not providing any tax advice or guidance in respect of the application of section 86.1 or the filing of the election, and therefore Canadian shareholders should consult their own tax advisors in this regard.
Notice to Shareholders outside of the U.S. and Canada
In connection with the spin-off of CDK Global, Inc. ("CDK"), Automatic Data Processing, Inc. ("ADP") will not request tax assurances in foreign countries (other than Canada) that the distribution of CDK stock will be treated as a tax free distribution. Shareholders resident in countries other than the United States and Canada are encouraged to consult with a local country tax advisor to properly reflect the tax treatment of the distribution of CDK stock under foreign tax laws.