Canetic Resources Trust Provides 2006 US Tax Information
2007年3月7日 - 10:47AM
PRニュース・ワイアー (英語)
CALGARY, March 6 /PRNewswire-FirstCall/ -- Canetic Resources Trust
("Canetic" or the "Trust") is pleased to provide the following
information to assist individual U.S. unitholders in reporting
distributions received from Canetic on their IRS form 1040 - U.S.
Individual Income Tax Return for the 2006 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 holder or
potential holder of Canetic trust units. Readers should consult
their own legal or tax advisors as to their particular tax
consequences of holding Canetic trust units. Canetic 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 Canetic trust units are held within a
qualified retirement plan. Canetic Units Held Outside a Qualified
Retirement Plan
------------------------------------------------------ Canetic
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. Canetic has determined that 100% of
distributions paid during 2006 should be reported as a "qualified
dividend" and that no portion of the distributions should be
reported as a tax-deferred return of capital. In consultation with
its U.S. tax advisors, Canetic is of the opinion that the dividend
portion of the 2006 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 2006
1040 Instruction Booklet, where the dividends may not be Qualified
Dividends (such as in situations where the individual unitholder
does not meet 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 Canetic 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. We have every reason to believe that
Canetic dividends should appear as "Qualified Dividends" on Line
1(b) of the 1099-DIV forms received for 2006 since the Trust has
undertaken measures to ensure it has been included as a "qualified
foreign corporation" on a database established and maintained by
several U.S. brokerage firms. Registered unitholders will receive
form 1099-DIV directly from Canetic's transfer agent. Unitholders
are strongly encouraged to compare the 1099-DIV form received from
their broker to the information provided in this press release,
noting in particular that the dividend amount is correctly
identified as a "Qualified Dividend". Investors should consult
their brokers and tax advisors to ensure the proper information is
accurately reflected on their tax returns. Unitholders are
encouraged to utilize the Qualified Dividends and Capital Gain
Worksheet to determine the amount of tax that may otherwise be
payable. Pursuant to the Canada - U.S. Tax Treaty, Canetic
distributions paid to residents of the United States are subject to
a 15% withholding tax on 100% of the gross distribution. Based on
an opinion we have received from our U.S. tax advisors, for units
held in taxable accounts, we believe the full amount of Canadian
withholding taxes applied to Canetic distributions should be
creditable for U.S. tax purposes in the taxation year in which it
is applied. Where units are held in a tax-deferred account (e.g.,
an IRA account), no portion of the withholding tax is creditable.
All 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 2006 distributions should be available
through your broker or other intermediary and is not available from
Canetic. 2006 Summary of U.S. Tax Information
------------------------------------ The following schedules
summarize, on a per unit basis, the U.S. tax treatment of monthly
cash distributions paid by Canetic (prior to Canadian withholding
tax) for the period January 1st to December 31st, 2006. The amounts
are expressed in $ U.S. converted on the date of payment. Please
note the first payment made by Canetic in 2006 (i.e., paid on or
about Jan 13, 2006) was in respect of distributions declared in
predecessor Acclaim Energy Trust ("Acclaim") or StarPoint Energy
Trust ("StarPoint") prior to the merger and therefore, the
appropriate table to use below will be dependent on whether you
held Acclaim or StarPoint units immediately prior to the merger
which created Canetic on January 5, 2006. 2006 CASH DISTRIBUTION
INFORMATION FOR FORMER ACCLAIM UNITHOLDERS ($/CANETIC UNIT)
-------------------------------------------------------------------------
Cash Distri- Tax- bution Deferred per Cash Taxable Return Canetic
Conver- Distri- Qualified of Payment Unit sion bution Dividend
Capital Record Date Date ($Cdn) Rate(1) ($U.S.) ($U.S.) ($U.S.)
-------------------------------------------------------------------------
Dec 30 2005 Jan 13, 2006 0.1950 0.8611 0.167915 0.167915 Nil Jan 31
2006 Feb 15 2006 0.2300 0.8665 0.199295 0.199295 Nil Feb 28 2006
Mar 15 2006 0.2300 0.8656 0.199088 0.199088 Nil Mar 31 2006 Apr 13
2006 0.2300 0.8681 0.199663 0.199663 Nil Apr 28 2006 May 15 2006
0.2300 0.8977 0.206471 0.206471 Nil May 31 2006 Jun 15 2006 0.2300
0.8947 0.205781 0.205781 Nil Jun 30 2006 Jul 14 2006 0.2300 0.8870
0.204010 0.204010 Nil Jul 31 2006 Aug 15 2006 0.2300 0.8912
0.204976 0.204976 Nil Aug 31 2006 Sep 15 2006 0.2300 0.8933
0.205459 0.205459 Nil Sep 29 2006 Oct 13 2006 0.2300 0.8797
0.202331 0.202331 Nil Oct 31 2006 Nov 15 2006 0.2300 0.8780
0.201940 0.201940 Nil Nov 30 2006 Dec 15 2006 0.2300 0.8640
0.198720 0.198720 Nil ------ ---------------------------- TOTAL
$2.725 $2.396 $2.396 Nil ------ ---------------------------- ------
---------------------------- (1) Bank of Canada noon rate on date
of payment 2006 CASH DISTRIBUTION INFORMATION FOR FORMER STARPOINT
UNITHOLDERS ($/CANETIC UNIT)
-------------------------------------------------------------------------
Cash Distri- Tax- bution Deferred per Cash Taxable Return Canetic
Conver- Distri- Qualified of Payment Unit sion bution Dividend
Capital Record Date Date ($Cdn) Rate(1) ($U.S.) ($U.S.) ($U.S.)
-------------------------------------------------------------------------
Dec 31 2005 Jan 13, 2006 0.2200 0.8611 0.189442 0.189442 Nil Jan 31
2006 Feb 15 2006 0.2300 0.8665 0.199295 0.199295 Nil Feb 28 2006
Mar 15 2006 0.2300 0.8656 0.199088 0.199088 Nil Mar 31 2006 Apr 13
2006 0.2300 0.8681 0.199663 0.199663 Nil Apr 28 2006 May 15 2006
0.2300 0.8977 0.206471 0.206471 Nil May 31 2006 Jun 15 2006 0.2300
0.8947 0.205781 0.205781 Nil Jun 30 2006 Jul 14 2006 0.2300 0.8870
0.204010 0.204010 Nil Jul 31 2006 Aug 15 2006 0.2300 0.8912
0.204976 0.204976 Nil Aug 31 2006 Sep 15 2006 0.2300 0.8933
0.205459 0.205459 Nil Sep 29 2006 Oct 13 2006 0.2300 0.8797
0.202331 0.202331 Nil Oct 31 2006 Nov 15 2006 0.2300 0.8780
0.201940 0.201940 Nil Nov 30 2006 Dec 15 2006 0.2300 0.8640
0.198720 0.198720 Nil ------ ---------------------------- TOTAL
$2.75 $2.417 $2.417 Nil ------ ---------------------------- ------
---------------------------- (1) Bank of Canada noon rate on date
of payment Canetic is one of Canada's largest oil and gas royalty
trusts. Canetic trust units and debentures are listed on the
Toronto Stock Exchange under the symbols CNE.UN, CNE.DB.A,
CNE.DB.B, CNE.DB.C, CNE.DB.D, and CNE.DB.E and the trust units are
listed on the New York Stock Exchange under the symbol CNE.
DATASOURCE: Canetic Resources Trust CONTACT: please see the website
at http://www.canetictrust.com/; or contact Canetic investor
relations by email at: , or toll free telephone at 1-877-539-6300
Copyright