ARC Energy Trust announces 2007 U.S. tax information

    CALGARY, Feb. 12 /CNW/ - (AET.UN and ARX - TSX) ARC Energy Trust ("ARC"
or "the Trust") announces its 2007 U.S. Income Tax Information to be as


    U.S. Income Tax Information

    The following information is being provided to assist U.S. individual
unitholders of ARC Energy Trust ("ARC") in reporting distributions received
from ARC during 2007 on their Internal Revenue Service ("IRS") Form 1040,
"U.S. Individual Income Tax Return" ("Form 1040").

    This 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 ARC trust units.
Holders or potential holders of ARC trust units should consult their own legal
and tax advisors as to their particular tax consequences of holding ARC trust

    Qualified Dividends

    In consultation with its U.S. tax advisors, ARC believes that its trust
units should be properly classified as equity in a corporation, rather than
debt, and that dividends paid to individual U.S. unitholders should be
"qualified dividends" for U.S. federal income tax purposes. As such, the
portion of the distributions made during 2007 that are considered dividends
for U.S. federal income tax purposes should qualify for the reduced rate of
tax applicable to long-term capital gains. However, the individual taxpayer's
situation must be considered before making this determination.

    Trust Units Held Outside a Qualified Retirement Plan

    With respect to cash distributions paid during the year to U.S.
individual unitholders, 1.76 percent should be reported as a return of capital
(to the extent of the unitholder's U.S. tax basis in their respective units)
and 98.24 percent should be reported as "qualified dividends". The table below
summarizes the distributions paid by ARC in 2007.
    The portion of the distributions treated as "qualified dividends" should
be reported on Line 9b of Form 1040, unless the fact situation of the U.S.
individual unitholders determines otherwise. Commentary on page 19 of the Form
1040 Instruction Booklet for 2007 with respect to "qualified dividends"
provides examples of individual situations where the dividends would not be
"qualified dividends". Where, due to individual situations, the dividends are
not "qualified dividends", the amount should be reported on Schedule B - Part
II - Ordinary Dividends and Line 9a of Form 1040.
    For U.S. federal income tax purposes, in reporting a return of capital
with respect to distributions received, U.S. unitholders are required to
reduce the cost base of their trust units by the total amount of distributions
received that represent a return of capital. This amount is non-taxable if it
is a return of cost base in the trust units. If the full amount of the cost
base has been recovered, any further return of capital distributions should be
reported as capital gains.
    U.S. unitholders are encouraged to utilize the Qualified Dividends and
Capital Gain Tax Worksheet of Form 1040 to determine the amount of tax that
may be otherwise applicable.
    The full amount of the distribution paid to a non-resident of Canada is
subject to a minimum 15 percent Canadian withholding tax that is withheld
prior to any payments being distributed to unitholders. Where trust units are
held outside a qualified retirement account, the full amount of all
withholding tax should be creditable, subject to numerous limitations, for
U.S. tax purposes in the year in which the withholding taxes are withheld.
Where trust units are held in qualified retirement account, the same
withholding taxes apply but the amount is not creditable for U.S. tax
    The amount of Canadian tax withheld should be reported on Form 1116,
"Foreign Tax Credit (Individual, Estate, or Trust)". Information regarding the
amount of Canadian tax withheld in 2007 should be determined from your own
records and is not available from ARC. Amounts over withheld, if any, from
Canada should be claimed as a refund from the Canada Revenue Agency no later
than two years after the calendar year in which the payment was paid.
Investors should report their dividend income and capital gain (if any), and
make adjustments to their tax basis in ARC's units, in accordance with this
information and subject to advice from their tax advisors. U.S. individual
unitholders who hold their ARC trust units through a stockbroker or other
intermediary should receive tax reporting information from their stockbroker
or other intermediary. We expect that the stockbroker or other intermediary
will issue a Form 1099-DIV, "Dividends and Distributions" or a substitute form
developed by the stockbroker or other intermediary. ARC is not required to
furnish such unitholders with Form 1099-DIV. Information on the Forms 1099-DIV
issued by the brokers or other intermediaries may not accurately reflect the
information in this press release for a variety of reasons. Investors should
consult their brokers and tax advisors to ensure that the information
presented here is accurately reflected on their tax returns. Brokers and/or
intermediaries may or may not be required to issue amended Forms 1099-DIV.

    Trust Units Held Within a Qualified Retirement Plan

    No amounts are required to be reported on a Form 1040 where ARC trust
units are held within a qualified retirement plan.

    Summary of U.S. Tax Information

    The following table provides, on a per unit basis, the breakdown of the
amount of cash distributions, prior to Canadian withholding tax, paid by ARC
for the period January 15 to December 17, 2007. The amounts are segregated
between the portion of the cash distribution that could be considered
"qualified dividends" and the portion reported as non-taxable return of
capital (and/or capital gain). The amounts shown on the following table are in
U.S. dollars as converted on the applicable payment dates. This table is for
information purposes only.

                     2007 CASH DISTRIBUTION INFORMATION
                             FOR U.S. UNITHOLDERS
                                (U.S. $/Unit)

                               Distri-           Distri-  Taxable    Taxable
                               bution            bution  Qualified  Return of
                                 Paid  Exchange   Paid    Dividend   Capital
    Record Date   Payment Date   CDN$    Rate      US$      US$        US$
    Dec 31, 2006  Jan 15, 2007  $0.20  0.856100 $0.171220 $0.168207 $0.003013
    Jan 31, 2007  Feb 15, 2007  $0.20  0.859200 $0.171840 $0.168816 $0.003024
    Feb 28, 2007  Mar 15, 2007  $0.20  0.850500 $0.170100 $0.167106 $0.002994
    Mar 31, 2007  Apr 16, 2007  $0.20  0.884200 $0.176840 $0.173728 $0.003112
    Apr 30, 2007  May 15, 2007  $0.20  0.911000 $0.182200 $0.178993 $0.003207
    May 31, 2007  Jun 15, 2007  $0.20  0.936400 $0.187280 $0.183984 $0.003296
    Jun 30, 2007  Jul 16, 2007  $0.20  0.958800 $0.191760 $0.188385 $0.003375
    Jul 31, 2007  Aug 15, 2007  $0.20  0.930600 $0.186120 $0.182844 $0.003276
    Aug 31, 2007  Sep 17, 2007  $0.20  0.970100 $0.194020 $0.190605 $0.003415
    Sep 30, 2007  Oct 15, 2007  $0.20  1.024800 $0.204960 $0.201353 $0.003607
    Oct 31, 2007  Nov 15, 2007  $0.20  1.019600 $0.203920 $0.200331 $0.003589
    Nov 30, 2007  Dec 17, 2007  $0.20  0.992800 $0.198560 $0.195065 $0.003495
    Total Per Unit              $2.40           $2.238820 $2.199417 $0.039403

    ARC RE

SOURCES LTD. John P. Dielwart, President and Chief Executive Officer

For further information:

For further information: For further information about ARC Energy Trust,
please visit our website or contact: Investor
Relations, E-mail:, Telephone: (403) 503-8600, Fax: (403)
509-6417, Toll Free 1-888-272-4900, ARC Resources Ltd., 2100, 440 - 2nd Avenue
S.W., Calgary, AB, T2P 5E9

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