Canetic Resources Trust provides 2005 tax information to former unitholders of APF Energy Trust
2006年2月27日 - 9:00PM
PRニュース・ワイアー (英語)
CALGARY, Feb. 27 /PRNewswire-FirstCall/ -- (CNE.UN - TSX; CNE -
NYSE) - Canetic Resources Trust ("Canetic") is pleased to provide
2005 tax information to former Canadian and U.S. resident
unitholders of APF Energy Trust ("APF"). Canetic was created as a
result of the merger of Acclaim Energy Trust ("Acclaim") and
StarPoint Energy Trust ("StarPoint") pursuant to a Plan of
Arrangement effective January 5, 2006. Previously, StarPoint and
APF had merged pursuant to a Plan of Arrangement effective June 27,
2005. 2005 CANADIAN TAX INFORMATION -----------------------------
The information contained herein is intended to provide information
for 2005 income tax reporting for Canadian resident individual
former holders of APF trust units. It is not exhaustive of all
income tax considerations and is not intended to constitute legal
or tax advice to any former holder of APF trust units or holder of
Canetic trust units. Readers should consult their own legal or tax
advisors as to their particular tax consequences of holding APF
trust units. Tax Treatment of Distributions
------------------------------ APF qualified as a mutual fund trust
under the Income Tax Act (Canada) (the "Tax Act") and the trust
units of APF were qualified investments for a Registered Retirement
Savings Plan ("RRSP"), Registered Retirement Income Fund ("RRIF"),
Registered Education Savings Plan ("RESP") or Deferred Profit
Sharing Plan ("DPSP"). For Canadian unitholders, the monthly trust
distributions were comprised of a taxable (income) portion and a
tax-deferred (return of capital) portion. The taxable portion is
determined directly from the calculation of APF's taxable income
and is dependent upon various tax deductions that APF may claim
against its income for tax purposes for the year. The income earned
by APF is subject to fluctuations in production volumes, commodity
prices and cash flows during the period. Taxable amounts are
reported in APF's T3 return and allocated to individual unitholders
via T3 supplementary slips prepared by APF's transfer agent,
brokers or other intermediaries. Unitholders are then generally
required to include their proportionate share of this income
allocation in their tax return for the year. The taxable income
allocated to the regular monthly trust distributions was sufficient
to account for the taxable income earned in APF for the period
ended June 27, 2005. Consequently, the Special Distribution
(consisting of APF Energy Inc. Notes and Rockyview Warrants), paid
to APF unitholders of record on June 27, 2005 will be considered
100% return of capital for Canadian tax purposes. Unitholders are
required to reduce the Adjusted Cost Base ("ACB") of their units
held by the amount of the distributions considered to be a
non-taxable return of capital each year. Provided the units are
held as capital property, to the extent a unitholder's ACB is
reduced below zero, any future non-taxable return of capital
distributions will be deemed to be a capital gain and the
unitholder's ACB will become zero. Unitholders are strongly
encouraged to maintain an ongoing record of the return of capital
portion of trust distributions and regularly update their ACB
calculations. Each unitholder is solely responsible for his or her
own ACB calculations and neither APF nor Canetic tracks these
amounts nor provides advice in this respect. Units Held within an
RRSP, RRIF, RESP or DPSP
--------------------------------------------- Unitholders who held
APF units in a RRSP, RRIF, RESP or DPSP should not report any
amount on their 2005 T1 Income Tax Return. Units Held outside an
RRSP, RRIF, RESP or DPSP
---------------------------------------------- Unitholders who held
APF units outside of an RRSP, RRIF, RESP or DPSP will receive a "T3
Supplementary" slip postmarked on or before March 31, 2006. APF's
Canadian registered unitholders will receive "T3 Supplementary"
slips directly from APF's transfer agent, Computershare Trust
Company of Canada. APF units held through a broker or other
intermediary will receive a "T3 Supplementary" slip from their
broker or other intermediary and not from the transfer agent or
from APF. Canetic has determined that the regular monthly
distributions received by Canadian resident APF unitholders in
respect of the 2005 taxation year are 87.74% taxable (income) and
12.26% tax-deferred (return of capital). Canetic confirms the
Special Distribution received by Canadian resident unitholders (APF
Energy Inc Notes and Rockyview Warrants) in respect of the Plan of
Arrangement effective June 27, 2005 is 100% tax-deferred (return of
capital). The taxable portion of distributions are to be reported
as "Other income" and will be included in Box (26) of the "T3
Supplementary" slip. Pursuant to paragraph 12(1)(m) of the Tax Act,
income earned by APF in 2005 and allocated to unitholders must be
reported by unitholders in their 2005 income tax returns. 2005
Summary of Canadian Tax Information
---------------------------------------- The table below
summarizes, on a per unit basis, the taxability of monthly cash
distributions paid and included in the 2005 "T3 Supplementary"
slips, which, for Canadian tax purposes, will include distributions
with record dates from January 31, 2005 to May 31, 2005. The table
below summarizes, on a per unit basis, the taxability of the
Special Distribution paid and included in the 2005 "T3
Supplementary" slips, which, for Canadian tax purposes, is the
distribution with a record date of June 27, 2005 2005 MONTHLY CASH
DISTRIBUTION INFORMATION FOR CANADIAN UNITHOLDERS ($/UNIT)
-------------------------------------------------------------------------
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Return of Taxable Capital Cash Amount Amount Record Date Payment
Date Distribution (87.74%) (12.26%)
-------------------------------------------------------------------------
Jan 31 2005 Feb 15 2005 0.1600 0.140388 0.019612 Feb 28 2005 Mar 15
2005 0.1600 0.140388 0.019612 Mar 31 2005 Apr 15 2005 0.1600
0.140388 0.019612 Apr 29 2005 May 16 2005 0.1600 0.140388 0.019612
May 31 2005 Jun 15 2005 0.1600 0.140388 0.019612
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TOTAL $0.80 0.701938 0.098062
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The table below summarizes, on a per unit basis, the taxability of
the Special Distribution paid and included in the 2005 "T3
Supplementary" slips, which, for Canadian tax purposes, is the
distribution with a record date of June 27, 2005 2005 SPECIAL
DISTRIBUTION INFORMATION FOR CANADIAN UNITHOLDERS ($/UNIT)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Return of Taxable Capital Cash Amount Amount Record Date Payment
Date Distribution (0.00%) (100.00%)
-------------------------------------------------------------------------
Jun 27 2005 June 27 2005 0.730000 - 0.730000
-------------------------------------------------------------------------
TOTAL $0.73 - 0.730000
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Adjusted Cost Base ------------------ Former holders of APF trust
units must reduce the ACB of their units by an amount equal to the
cumulative cash received from distributions minus the cumulative
taxable amounts reported as "Other income" on their "T3
Supplementary" slips. Provided trust units are held as capital
property, the ACB is used in determining the capital gain or loss
to report on disposition of the units. 2005 U.S. TAX INFORMATION
------------------------- The following information is provided to
assist individual U.S. unitholders in reporting distributions
received from APF on their IRS form 1040 - U.S. Individual Income
Tax Return for the 2005 calendar year. The information contained
herein is of a general nature only and not exhaustive of all
possible U.S. tax considerations. It is not intended to constitute
legal or tax advice to any former holder of APF trust units or
holder of Canetic trust units. Readers should consult their own
legal or tax advisors as to their particular tax consequences of
holding APF trust units. APF Units Within a Qualified Retirement
Plan -------------------------------------------- No amounts are
required to be reported on an IRS Form 1040 - U.S. Individual
Income Tax Return if APF trust units are held within a qualified
retirement plan. APF Units Held Outside a Qualified Retirement Plan
-------------------------------------------------- The table below
summarizes the taxability of distributions paid in 2005. APF should
be treated as a corporation and its units as equity under U.S. tax
law. Therefore, a portion of the trust's distributions paid during
the year should be considered dividends for U.S. federal income tax
purposes. The dividend component is based on APF's current and
accumulated earnings and profits determined in accordance with U.S.
income tax principles. APF has determined that 100.00% of the
distributions paid during 2005 (including the Special Distribution
of APF Energy Inc. Notes and Rockyview Warrants pursuant to the
June 27, 2005 Plan of Arrangement) should be reported as a
qualified dividend and, consequently, no portion of the
distributions represent a tax-deferred return of capital. In
consultation with its U.S. tax advisors, Canetic believes that the
2005 APF distributions should be considered "Qualified Dividends"
under the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Such Qualified Dividends are eligible for the reduced tax rate
applicable to long-term capital gains and are to be reported on
line 9(b) of the Federal income tax return. There are certain
individual circumstances, as provided on page 23 of the IRS 2005
1040 Instruction Booklet, where the dividends may not be Qualified
Dividends (such as in situations where the individual unitholder
does not meeting a holding period test). Where these circumstances
apply, they are to be reported as Ordinary Dividends on Schedule B
- Part II and line 9(a) of the Federal income tax return. U.S.
individual unitholders who hold their APF units through a broker or
other intermediary should receive tax reporting information from
the broker or intermediary. We expect the broker or intermediary
will issue a 1099-DIV "Dividends and Distributions" or a similar
substitute form. The trust is not required to prepare and file
1099-DIV forms and is providing this information in lieu of that
requirement. Unitholders are strongly encouraged to compare the
1099-DIV form received from their broker to the information
provided in this press release. Investors should consult their
brokers and tax advisors to ensure the proper information is
accurately reflected on their tax returns. As no portion of
distributions paid during 2005 represents a return of capital,
which is generally non-taxable if it is a return of your cost (or
other basis) in the trust units, no adjustment to your cost (or
other basis) is required for 2005. Trust distributions paid to a
non-resident of Canada are subject to a flat 15% Canadian
withholding tax which is withheld and remitted. Where trust units
are held outside of a qualified retirement plan, the full amount of
the Canadian withholding taxes should be creditable for U.S. tax
purposes in the year in which the withholding tax is applied.
Canadian withholding taxes that have been withheld from your
distributions should be reported on Form 1116 "Foreign Tax Credit
(Individual, Estate or Trust)". Information regarding the amount of
Canadian tax withheld from 2005 distributions should be available
through your broker or other intermediary and is not available from
APF or Canetic. 2005 Summary of U.S. Tax Information
------------------------------------ The following schedule
summarizes, on a per unit basis, the U.S. tax treatment of monthly
cash distributions paid by APF (prior to Canadian withholding tax)
for the period January 1st to December 31st, 2005. The amounts are
segregated between the portion of the distribution that would be
reported as a qualified dividend and the amount reported as a
tax-deferred return of capital. The amounts are expressed in $ U.S.
converted on the date of payment. 2005 CASH DISTRIBUTION
INFORMATION FOR U.S. UNITHOLDERS ($/UNIT)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Tax- Deferred Cash Cash Taxable Return Distri- Conve- Distri-
Qualified of Record Payment bution rsion bution Dividend Capital
Date Date ($Cdn) Rate(1) ($ U.S.) ($ U.S.) ($ U.S.)
-------------------------------------------------------------------------
Dec 31 2004 Jan 17 2005 0.1600 0.822030 0.131525 0.131525 nil Jan
31 2005 Feb 15 2005 0.1600 0.810635 0.129702 0.129702 nil Feb 28
2005 Mar 15 2005 0.1600 0.827952 0.132472 0.132472 nil Mar 31 2005
Apr 15 2005 0.1600 0.805218 0.128834 0.128834 nil Apr 29 2005 May
16 2005 0.1600 0.787154 0.125945 0.125945 nil May 31 2005 Jun 15
2005 0.1600 0.799361 0.127898 0.127898 nil Jun 27 2005 Jun 27 2005
0.7300 0.812480 0.593110 0.593110 nil --------
----------------------------- TOTAL $1.69 $1.36949 $1.36949 nil
-------- ----------------------------- --------
----------------------------- (1) Bank of Canada noon rate on date
of payment Canetic Resources Trust was formed on January 5, 2006,
from the merger of Acclaim Energy Trust and StarPoint Energy Trust.
Canetic produces approximately 75,000 boe/d, weighted 60 percent to
oil and liquids and 40 per cent to natural gas. The Trust has
approximately a 9 year reserve life index and is one of the largest
producers of conventional oil and gas in the Canadian royalty trust
sector. For further information, please see the website at
http://www.canetictrust.com/ or contact Canetic investor relations
by email at: or by toll free telephone at 1-877-539-6300. ADVISORY:
Certain information regarding Canetic Resources Trust including
management's assessment of future plans and operations, reserve and
production estimates, drilling inventory, and Canetic's
distribution policy may constitute forward-looking statements under
applicable securities law and necessarily involve risks, including,
without limitation, risks associated with oil and gas exploration,
development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates,
environmental risks, competition, incorrect assessment of the value
of acquisitions, failure to realize the anticipated benefits of
acquisitions and ability to access sufficient capital from internal
and external sources; failure to obtain required regulatory
approvals. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements. Readers
are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect
Canetic's operations or financial results are included in reports
on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (http://www.sedar.com/) or at
Canetic's website (http://www.canetictrust.com/). Furthermore, the
forward-looking statements contained in this news release are made
as of the date of this news release, and none Canetic undertakes no
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be expressly required by
applicable securities law. Where reserves or production are stated
on a barrel of oil equivalent (BOE) basis, natural gas volumes have
been converted to a barrel of oil equivalent (BOE) at a ratio of
six thousand cubic feet of natural gas to one barrel of oil. This
conversion ratio is based upon an energy equivalent conversion
method primarily applicable at the burner tip and does not
represent value equivalence at the wellhead. BOEs may be
misleading, particularly if used in isolation. DATASOURCE: Canetic
Resources Trust CONTACT: Investor Relations, (403) 539-6300, ,
http://www.canetictrust.com/; To request a free copy of this
organization's annual report, please go to http://www.newswire.ca/
and click on Tools for Investors.
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