Canadian Oil Sands Trust provides tax information for 2008 distributions



    CALGARY, Feb. 27 /CNW/ - (TSX - COS.UN) - Canadian Oil Sands Trust (the
"Trust") today reported the tax information for the cash distributions
declared and paid in 2008 to Unitholders resident in Canada and the United
States ("U.S.").

    The following information is provided for general information only and
should not be considered tax or legal advice to any particular existing or
potential holder of Trust units. Unitholders are strongly encouraged to
consult their tax advisors with respect to their particular circumstances.

    Tax information for Unitholders resident in Canada

    The following information is based on the Trust's understanding of the
Income Tax Act (Canada) and regulations thereunder.

    No amounts are required to be reported for tax purposes in respect of
cash distributions on the Trust's Units received in 2008 by a Registered
Retirement Savings Plan, Registered Pension Plan, Registered Retirement Income
Fund or Deferred Profit Sharing Plan or any other such registered plans
("Deferred Plans"). For cash distributions received by a Canadian resident
individual outside of a Deferred Plan, almost 100 per cent of the payments are
taxable as income.
    The following table outlines the breakdown of cash distributions per Unit
paid by the Trust with respect to record dates for the year ended December 31,
2008.

    
    -------------------------------------------------------------------------
    Record Date   Payment Date  Cdn$ Total    Cdn$ Taxable  Cdn$ Tax Deferred
                                Cash          Amount Per    Amount Per Unit
                                Distribution  Unit (99.998  (0.002 per cent)
                                Per Unit      per cent)
    -------------------------------------------------------------------------
    Feb 12, 2008  Feb 29, 2008  0.75          0.74999           0.00001
    May 16, 2008  May 30, 2008  1.00          0.99998           0.00002
    Aug 15, 2008  Aug 29, 2008  1.25          1.24998           0.00002
    Nov 14, 2008  Nov 28, 2008  0.75          0.74999           0.00001
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                       3.75          3.74994           0.00006
    -------------------------------------------------------------------------
    

    T3 Statement of Trust Income Allocations and Designations forms are
expected to be mailed to the Trust's Unitholders on or before March 31, 2009
by your financial institution if the Units are held in non-registered or
nominee form, or by Computershare if the Units are held in registered form.

    Tax information for Unitholders resident in the U.S.

    Canadian Oil Sands believes that the distributions paid in the 2008
calendar year are considered foreign-source dividend income under U.S. federal
income tax principles. Providing that applicable holder-level requirements are
met, these distributions are "qualified dividends" eligible for taxation at
reduced rates under U.S. federal income tax legislation; however, Canadian Oil
Sands has not received an IRS letter ruling or tax opinion from its tax
advisors on these matters, and the individual taxpayer's situation must be
considered before making this determination.
    Generally, distributions payable to non-residents of Canada are normally
subject to a withholding tax of 25 per cent as prescribed by the Income Tax
Act (Canada); however, the withholding tax for residents of the U.S. is
prescribed at 15 per cent in accordance with a reciprocal tax treaty between
the U.S. and Canada. U.S. taxpayers may be eligible for a foreign tax credit
with respect to the Canadian withholding taxes paid. Other jurisdictions may
also have reciprocal tax treaties that would reduce the withholding tax rate.
    A Canadian NR4 (non-resident) supplemental form detailing the Canadian
tax withheld and remitted to the Canadian government will be mailed to the
Trust's non-resident Unitholders by your financial institution if the Units
are held in non-registered or nominee form, or by Computershare if the Units
are held in registered form.
    The following table provides the breakdown of the amount of cash
distribution, prior to the Canadian withholding tax, paid by the Trust in
2008.

    
    -------------------------------------------------------------------------
    Record Date   Payment Date  Cdn$    US$/Cdn$  US$      Per      Per cent
                                Distri- Currency  Equi-    cent of  of Dist-
                                bution  Exchange  valent   Distri-  ribution
                                Per     Rate on   Distri-  bution   Return of
                                Unit    Payment   bution   Taxable  Capital/
                                        Date      Per               Capital
                                                  Unit              Gain
    -------------------------------------------------------------------------
    Feb 12, 2008  Feb 29, 2008  0.75    1.0206    0.76545  97.34    2.66
    May 16, 2008  May 30, 2008  1.00    1.0058    1.00580  97.34    2.66
    Aug 15, 2008  Aug 29, 2008  1.25    0.9411    1.17638  97.34    2.66
    Nov 14, 2008  Nov 28, 2008  0.75    0.8083    0.60623  97.34    2.66
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                       3.75                       97.34    2.66
    -------------------------------------------------------------------------
    

    It is possible that the U.S. dollar amount was different for
non-registered, or beneficial Unitholders receiving their payment from an
intermediary or brokerage firm using different exchange rates.

    For more information

    For any questions regarding the supplemental tax forms, please contact
your financial institution if your Units are held in non-registered form. If
your Units are held in registered form, contact the Trustee and Transfer
Agent, Computershare Trust Company of Canada, at 1-800-564-6253. For all other
inquiries, please contact the Trust.
    Further information on distributions paid by the Trust, including a tax
summary of distributions paid since inception, is available on the Trust's Web
site at www.cos-trust.com under investor information, distributions.

    Canadian Oil Sands Trust provides a pure investment opportunity in the
Syncrude Project through its 36.74 per cent working interest. Located near
Fort McMurray, Alberta, Syncrude operates large oil-sands mines and an
upgrading facility that produces a high-quality, sweet crude oil. The Trust is
an open-ended investment trust managed by Canadian Oil Sands Limited and has
approximately 483.2 million units outstanding, trading on the Toronto Stock
Exchange under the symbol COS.UN.

    
    Canadian Oil Sands Limited
    Marcel Coutu
    President & Chief Executive Officer

    Units Listed - Symbol: COS.UN
    Toronto Stock Exchange
    





For further information:

For further information: Siren Fisekci, Director, Investor Relations:
(403) 218-6228, investor_relations@cos-trust.com, Web site: www.cos-trust.com

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CANADIAN OIL SANDS TRUST

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