Canadian Oil Sands Trust provides tax information for 2007 distributions
CALGARY, Feb. 29 /PRNewswire-FirstCall/ -- (TSX -- COS.UN) - Canadian Oil Sands Trust (the "Trust") today reported the tax information for the cash distributions declared and paid in 2007 to Unitholders resident in Canada and the United States ("U.S.").
The following information is provided for general information only and 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 received 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, about 99 per cent of the payments are taxable as income. The remaining one per cent is a tax-deferred "return of capital", which should be deducted from the adjusted cost base of a holder's units in the Trust. 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, 2007. ------------------------------------------------------------------------- Cdn$ Tax
Tax information for Unitholders resident in the U.S. Canadian Oil Sands believes that the distributions paid in the 2007 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 Canada and the U.S.. 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 2007. ------------------------------------------------------------------------- Per cent
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 479.4 million units outstanding, trading on the Toronto Stock Exchange under the symbol COS.UN. Canadian Oil Sands Limited Units Listed - Symbol: COS.UN Source: Canadian Oil Sands Trust
CONTACT: Siren Fisekci, Director, Investor Relations: (403) 218-6228,
2008-02-29 17:02:45 0302051 PRNEWSWIRE
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