Peyto Energy Trust announces amended 2006 United States tax information



    SYMBOL: PEY.UN - TSX

    CALGARY, March 27 /CNW/ - The following information is being provided to
assist U.S. individual unitholders of Peyto Energy Trust ("Peyto") in
reporting distributions received from Peyto during 2006 on their Internal
Revenue Service ("IRS") Form 1040 - U.S. Individual Income Tax Return ("Form
1040") for 2006.
    Peyto has not obtained a legal or tax opinion, nor has it requested a
ruling from the IRS on these matters. The following summary is of a general
nature only and is not intended to be legal or tax advice to any particular
holder or potential holder of Peyto trust units. Holders or potential holders
of Peyto trust units should consult their own legal and tax advisors as to
their particular tax consequences of holding Peyto trust units.

    Trust Units held outside of a Qualified Retirement Plan

    For distributions relating to 2006, 100 percent of the distributions
should be considered taxable as dividends to the unitholder for U.S. federal
income tax purposes. After consulting with its tax advisors, Peyto believes
that its distributions should be considered "Qualified Dividends" under the
Jobs and Growth Tax Relief Reconciliation Act of 2003 and should be eligible
for the reduced U.S. dividend tax rate for U.S. individual unitholders who
meet certain holding period requirements. However, the individual taxpayer's
situation must be considered before making this determination. Qualified
Dividends should be reported on Line 9(b) of the IRS Form 1040, unless the
facts of the U.S. individual unitholder determine otherwise. Page 23 of the
IRS 2006 Form 1040 instruction booklet provides examples of individual
situations where the distributions would not be "Qualified Dividends". Where
the distributions are not considered "Qualified Dividends" due to an
individual's situation, the amount should be reported on Schedule B, Part II -
Ordinary Dividends and Line 9(a) of your IRS Form 1040.
    U.S. unitholders are encouraged to utilize the Qualified Dividends and
Capital Gain Tax Worksheet provided by the IRS to determine the amount of tax
applicable.
    Canadian withholding taxes that have been withheld from the taxable
portion of your distributions (as computed under Canadian tax principles)
should be reported on Form 1116 "Foreign Tax Credit (Individual, Estate or
Trust)". Amounts over-withheld should be claimed as a refund from the Canada
Revenue Agency and should not be claimed as a credit against your U.S. federal
income tax liability. Information regarding the amount of Canadian tax
withheld relating to 2006 distributions should be available through your
investment advisor or other intermediary and is not available from Peyto.

    Trust Units held within a Qualified Retirement Plan

    There should be no amount that is required to be reported as income on an
IRS Form 1040 where the Peyto trust units are held in a Qualified Retirement
Plan.
    The information in this release is not meant to be an exhaustive
discussion of all possible income tax considerations, but a general guideline
and is not intended to be legal or tax advice to any particular holder or
potential holder of Peyto trust units. Holders or potential holders of trust
units should consult their tax advisors as to their particular tax
consequences of holding Peyto trust units.

    Peyto is a natural gas weighted energy trust. Peyto is committed to
maintaining its emphasis on building value through the exploration and
development of high quality gas properties.
    Peyto trust units trade on the TSX under the symbol PEY.UN.
    We encourage you to actively visit Peyto's website located at
www.peyto.com.

    Certain information set forth in this document and Management's
Discussion and Analysis, including management's assessment of Peyto's future
plans and operations, contains forward-looking statements. By their nature,
forward-looking statements are subject to numerous risks and uncertainties,
some of which are beyond these parties' control, including the impact of
general economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates, environmental
risks, competition from other industry participants, the lack of availability
of qualified personnel or management, stock market volatility and ability to
access sufficient capital from internal and external sources. Readers are
cautioned that the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on forward-looking
statements. Peyto's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what benefits Peyto will derive therefrom. Peyto disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

    %SEDAR: 00019597E




For further information:

For further information: Darren Gee, President and Chief Executive
Officer, Phone: (403) 237-8911, Fax: (403) 451-4100

Organization Profile

PEYTO ENERGY TRUST

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890