ARC Energy Trust announces 2008 U.S. Tax Information

    CALGARY, Feb. 10 /CNW/ - (AET.UN and ARX - TSX) ARC Energy Trust ("ARC"
or "the Trust") announces its 2008 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 2008 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 units.

    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 2008 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, 8.47 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 91.53 percent should be reported as "qualified dividends". The table below
summarizes the distributions paid by ARC in 2008.
    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 21 of the Form
1040 Instruction Booklet for 2008 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 a 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 2008 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 15, 2008. 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.

                     2008 CASH DISTRIBUTION INFORMATION
                             FOR U.S. UNITHOLDERS
                                (U.S. $/Unit)

                             Distrib-                      Taxable    Taxable
                               ution           Distrib-  Qualified  Return of
                                Paid  Exchange   ution    Dividend    Capital
    Record Date  Payment Date   CDN$    Rate   Paid US$        US$        US$

    Dec 31, 2007 Jan 15, 2008  $0.20  0.9834  $0.196680  $0.180021  $0.016659
    Jan 31, 2008 Feb 15, 2008  $0.20  0.9984  $0.199680  $0.182767  $0.016913
    Feb 29, 2008 Mar 17, 2008  $0.20  1.0022  $0.200440  $0.183463  $0.016977
    Mar 31, 2008 Apr 15, 2008  $0.20  0.9822  $0.196440  $0.179802  $0.016638
    Apr 30, 2008 May 15, 2008  $0.20  1.0002  $0.200040  $0.183097  $0.016943
    May 31, 2008 Jun 16, 2008  $0.24  0.9793  $0.235032  $0.215125  $0.019907
    Jun 30, 2008 Jul 15, 2008  $0.24  0.9980  $0.239520  $0.219233  $0.020287
    Jul 31, 2008 Aug 15, 2008  $0.28  0.9426  $0.263928  $0.241573  $0.022355
    Aug 31, 2008 Sep 15, 2008  $0.28  0.9366  $0.262248  $0.240036  $0.022212
    Sep 30, 2008 Oct 15, 2008  $0.24  0.8473  $0.203352  $0.186128  $0.017224
    Oct 31, 2008 Nov 17, 2008  $0.24  0.8189  $0.196536  $0.179889  $0.016647
    Nov 30, 2008 Dec 15, 2008  $0.20  0.8096  $0.161920  $0.148205  $0.013715

    Total Per Unit             $2.72          $2.555816  $2.339339  $0.216477


    John P. Dielwart,
    President and Chief Executive Officer

    %SEDAR: 00001245E          %CIK: 0001029509

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., Suite 2100, 440 - 2nd Avenue S.W.,
Calgary, AB, T2P 5E9

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