Spino,
You appear very knowledgeable about ADRs. I have a question that is related to what you have written. I own ADRs in my UK-based company. When dividends are reported, I receive a statement indicating that, for example, the total "gross" dividend is worth $1,000 and that the processor's fee is $15, making my "net" dividend $985. When the processor reports the dividend income on which I should pay US income taxes, they report at the "gross" dividend level of $1,000. This seems wrong to me since I never received $1,000, but instead only the "net dividend" of $985. I'm not sure why I should pay taxes on the processor's fees. In your experience, what is the proper dividend income on which I should be paying taxes? Thank you for your perspective!
Paul
