Tax Information - Canadian Residents

Paramount Energy Trust qualifies as a mutual fund trust under the Canadian Income Tax Act and its Trust Units may be included as investments for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Registered Education Savings Plans (RESPs) and Deferred Profit Sharing Plans (DPSPs).

Under the Canadian Income Tax Act, PET is entitled to claim various deductions from its net income for tax purposes including, Canadian Oil and Gas Property Expense (COGPE), resource allowance and expenses of issuing Trust Units. Such deductions will generally result in a portion of PET's distributions being considered as a "return of capital" for income tax purposes. Such amounts reduce the cost base of the Units acquired and thus defer the related tax for Canadian resident Unitholders until the Units are sold.

PET has a December 31 income tax year end and each year will perform an income tax calculation and advise Unitholders as to the taxable and tax deferred portion, if any, of distributions paid throughout the year.

Following are brief summaries of Canadian individual income tax reporting requirements with respect to Trust Units.

Units held within a RRSP, RRIF, RESP or DPSP

No amount is to be reported in respect of Trust Units held within a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Registered Education Savings Plan (RESP) or Deferred Profit Sharing Plan (DPSP).

Units held outside an RRSP, RRIF, RESP or DPSP

Unitholders who hold trust units outside a RRSP, RRIF, RESP or DPSP and received one or more cash distributions during a calendar year will receive a "T3 Supplementary Slip". T3 slips are mailed in the month of March. Taxable income reported on the T3 slip is reported as "Other Income".

Paramount Energy Trust announces annual tax breakdowns via press release on or about March 1st of every year.  For the previous years determination please follow the link to our News Room.