Innergex Power Income Fund 2009 Canadian tax information
LONGUEUIL, QC, March 3 /CNW Telbec/ - The following information is intended to assist individual Canadian unitholders of Innergex Power Income Fund (IEF.UN) (the "Fund") in the completion of their 2009 federal, and if necessary, provincial income tax return.
Of the cash distributions for 2009, approximately 56% ($0.55990 per unit) is considered a return on capital and is therefore not taxable immediately in current income; 41% ($0.40976 per unit) is considered taxable income from a trust; and 3% ($0.03034 per unit) is a taxable as dividend, other than eligible dividends from a taxable Canadian corporation. The return on capital amount must be applied to reduce the adjusted cost base of the units when the units are sold.
Trust units held within a tax-deferred plan (ex.: Registered Retirement Savings Plan ("RRSP"), Registered Retirement Income Fund ("RRIF"), etc.)
When the Fund's units are held, for example, within a RRSP, a RRIF or any other tax-deferred plan, no amount should be reported in the income of the unitholders for his 2009 taxation year.
Trust units held outside of a tax-deferred plan
Unitholders who hold their trust units outside a RRSP, a RRIF or any other tax-deferred plan, have to include in their income the sums declared by the Fund. To that end, unitholders will receive directly from their broker a "T3 Supplementary" form, and a "Relevé 16" form for Quebec, for their 2009 taxation year. According to the Canada Revenue Agency and provincial tax authorities, the deadline to mail the prescribed slips to unitholders is March 31, 2010.
The attached schedule summarizes the information on the taxable portion of the 2009 cash distributions declared on a per unit basis by the Fund. Under the Income Tax Act, and other provincial relevant tax acts, taxable amounts allocated to the unitholders must be reported by the unitholders on their federal and provincial 2009 income tax returns.
Adjusted Cost Base ("ACB") for the determination of capital gains or losses
The ACB of a property usually represents the acquisition cost of the property, plus the expenses to acquire the property and some adjustments. Unitholders are notably required to reduce the ACB of their trust units by the amount of return of capital that is paid to them by the Fund. This amount is presented in box 42 of the "T3 supplementary" slip and in box M of "Relevé 16" slip for Quebec. For any other adjustment to the Fund units' ACB, we recommend that unitholders ask their tax advisors. The determination of the ACB is used in the determination of capital gains or losses on the disposition of the whole or a part of the trust units if the units are held as a capital property by the holder.
Innergex Power Income Fund 2009 - Tax Information ------------------------------------------------------------------------- Amount per unit ------------------------------------------ Taxable Non- taxable ------------------------------------------------------------------------- For the Record Payment Total Income Dividend Return period date date Distri- from a other on ended bution trust than an Capital Paid eligible Portion dividend paid out by a Canadian corpo- ration (prior to gross-up) ------------------------------------------------------------------------- January January February $0.08330 $0.03413 $0.00252 $0.04665 31, 2009 30, 2009 25, 2009 ------------------------------------------------------------------------- February February March $0.08330 $0.03413 $0.00252 $0.04665 28, 2009 27, 2009 25, 2009 ------------------------------------------------------------------------- March March April $0.08334 $0.03415 $0.00253 $0.04666 31, 2009 31, 2009 25, 2009 ------------------------------------------------------------------------- April April May $0.08334 $0.03415 $0.00253 $0.04666 30, 2009 30, 2009 25, 2009 ------------------------------------------------------------------------- May May June $0.08334 $0.03415 $0.00253 $0.04666 31, 2009 29, 2009 22, 2009 ------------------------------------------------------------------------- June June July $0.08334 $0.03415 $0.00253 $0.04666 30, 2009 30, 2009 24, 2009 ------------------------------------------------------------------------- July July August $0.08334 $0.03415 $0.00253 $0.04666 31, 2009 31, 2009 25, 2009 ------------------------------------------------------------------------- August August September $0.08334 $0.03415 $0.00253 $0.04666 31, 2009 31, 2009 25, 2009 ------------------------------------------------------------------------- September September October $0.08334 $0.03415 $0.00253 $0.04666 30, 2009 30, 2009 23, 2009 ------------------------------------------------------------------------- October October November $0.08334 $0.03415 $0.00253 $0.04666 31, 2009 30, 2009 25, 2009 ------------------------------------------------------------------------- November November December $0.08334 $0.03415 $0.00253 $0.04666 30, 2009 30, 2009 18, 2009 ------------------------------------------------------------------------- December December January $0.08334 $0.03415 $0.00253 $0.04666 31, 2009 31, 2009 25, 2010 ------------------------------------------------------------------------- TOTAL $1.00000 $0.40976 $0.03034 $0.55990 -------------------------------------------------------------------------
Innergex Power Income Fund is an open-ended income trust that indirectly owns interests in 10 hydroelectric power-generating facilities and two wind farms. The Fund's installed capacity is 340 MW (net interest of 210 MW). Approximately 27% of total annual production comes from wind energy. The Fund's units are traded on the Toronto Stock Exchange under the symbol IEF.UN. The hydroelectric facilities and wind farms are managed by Innergex Renewable Energy Inc. under long-term agreements with the Fund.
Forward-looking statements
Investors should take note that certain statements in this press release are forward-looking and may not give full weight to all of the potential risks and uncertainties. Forward-looking statements are subject by their nature to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the forward-looking statements. Any forward-looking statements speak only at the date made. The Fund is not undertaking to update any forward-looking statements.
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For further information: Ms. Edith Ducharme, LL.L., Director - Financial Communications and Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund, (450) 928-2550, ext. 222, [email protected]; Mr. Jean Trudel, MBA, Vice President - Finance and Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund, (450) 928-2550, ext. 252, [email protected]; www.innergex.com
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