Unitholder Tax Information
THIS SUMMARY IS OF A GENERAL NATURE ONLY AND IS NOT INTENDED TO BE, NOR SHOULD IT BE CONSTRUED TO BE, LEGAL, BUSINESS OR TAX ADVICE TO ANY PARTICULAR HOLDER. PERPETUAL ENERGY INC. RECOMMENDS THAT CANADIAN AND U.S. SHAREHOLDERS CONSULT THEIR OWN TAX ADVISORS REGARDING THE INCOME TAX CONSIDERATIONS APPLICABLE TO THEM IN THEIR PARTICULAR CIRCUMSTANCES.
Eligible Dividends for Canadian Tax Purposes
Perpetual Energy hereby advises all shareholders that, effective from July 1, 2010, all dividends paid on its common shares will be designated as "eligible dividends" for Canadian income tax purposes.
Should you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency ("CRA")
2010 Information for U.S. Tax Purposes
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January - July 2010 Trust Distribution
Units held within a RRSP, RRIF, RESP or DPSP
No amount is to be reported in respect of Trust Units held within a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Registered Education Savings Plan (RESP) or Deferred Profit Sharing Plan (DPSP).
Units held outside an RRSP, RRIF, RESP or DPSP
Unitholders who hold Trust Units outside a RRSP, RRIF, RESP or DPSP and received one or more cash distributions during a calendar year will receive a "T3 Supplementary Slip". T3 slips are mailed in the month of March (deadline of March 31, 2011). Taxable income reported on the T3 slip is reported as "Other Income".
Adjusted Cost Base ("ACB") Reduction
The Adjusted Cost Base ("ACB") is used in calculating capital gains or losses on the disposition of units held as capital property by a unitholder. The ACB of each share is reduced by the portion of distributions considered a return of capital, which is not reported on the T3 slip (the "tax-deferred amount described above"). Should a taxpayer's ACB ever be reduced below zero, that negative amount is deemed to be a capital gain of the individual and the ACB is deemed to be nil. The capital gain must be reported on Schedule 3 of your T1 return.
Paramount 2009 Taxation Archive