Paramount Energy Trust advises on 2007 U.S. Income Tax Reporting - 33 KBThis information is of a general nature only and is not intended to be legal or tax advice to any particular holder or potential holder of PET trust units. Holders or potential holders of PET trust units should consult their own legal and tax advisors as to their particular tax consequences of holding PET trust units.
U.S. Residents
The following information is being provided to assist individual U.S. Unitholders of Paramount Energy Trust in reporting distributions recieved from Paramount Energy Trust on their IRS Form 1040 - U.S. Individual Income Tax Return.
Trust Units held within a Qualified Retirement Plan
No amounts are required to be reported on an IRS Form 1040 - U.S. Individual Income Tax Return.
Trust Units held outside of a Qualifed Retirement Plan
Paramount Energy Trust, in consultation with its tax advisors, is of the view that the distributions paid to non-corporate Unitholders who are U.S. residents are "Qualified Dividends" under the Jobs and Growth Tax Relief Reconciliation Act of 2003. Commentary on pg 23 of the IRS 2003 Form 1040 instruction booklet 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 Dividiends", the amount should be reported on Schedule B - Part 11 - Ordinary Dividends, Line 9a of your U.S. Federal Income Tax return.
PET has not received an IRS letter ruling or a tax opinion from its tax advisors on these matters.
The taxable portion (for Canadian income tax purposes) of the distributions to U.S. Unitholders is subject to a minimum 15% Canadian withholding tax that is withheld prior to any payments being distributed to Unitholders. Beginning in 2005, the return of capital portion (for Canadian income tax purposes) of the distributions is also subject to a 15% withholding tax that is withheld prior to any payments being distributed to Unitholders.
TAX INFORMATION - Canadian Non-Residents
A distribution of income of Paramount Energy Trust to a Unitholder not resident in Canada will be subject to Canadian withholding tax at a rate of 25%, unless such rate is reduced under the provisions of an income tax convention between Canada and the Unitholder's jurisdiction of residence.
Information regarding the amount of Canadian tax withheld should be available from your stockbroker or other intermediary and is not available from Paramount Energy Trust.
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.