Canadian Tax Information
This summary is of a general nature only and is not intended to be, nor should it be construed to be legal, business or tax advice to any particular holder. Investors should consult their own tax advisors regarding the income tax considerations applicable to them in their particular circumstances.
Effective July 8, 2011, Canexus Income Fund converted to Canexus Corporation. This conversion was a tax deferred transaction for Canadian investors. Any distributions paid after July 15, 2011 will be treated as dividends subject to the dividend tax credit. All dividends paid on common shares will be designated as "eligible dividends" for Canadian income tax purposes. Should you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency ("CRA").
Investors who converted their Fund Units into shares are still required to reduce the cost base of their holdings by the return of capital distributions received up until July 15, 2011.
|Total Dividend/Share||Record Date||Payment Date|
|$0.1368||Sep 30, 2011||Oct 17, 2011|
|$0.1368||Dec 31, 2011||Jan 16, 2012|
|$0.1368||Mar 31, 2012||Apr 16, 2012|
|$0.1368||Jun 30, 2012||Jul 16, 2012|
|$0.1368||Sep 30, 2012||Oct 15, 2012|
|$0.1368||Dec 31, 2012||Jan 15, 2013|
Canexus Income Fund
Up until July 8, 2011, Canexus Income Fund ("the Fund") was a "mutual fund trust" as defined in the Income Tax Act (Canada) (the "Act"). Units in the Fund were qualified investments for a registered retirement savings plan ("RRSP"), registered retirement income fund ("RRIF"), deferred profit sharing plan ("DPSP") and registered education savings plan ("RESP") under the Act.
Cash distributions from the Fund to unitholders were comprised of an income component which is taxable and a return of capital component. The information below summarizes the tax allocation of distributions paid by The Fund prior to its conversion to a corporation. This information is relevant to investors in calculating the adjusted cost base of Fund Units.
Tax Allocation Summary of Fund Unit Distributions
|Total Distributions per Unit (CDN$)|
|Return of Capital||0.273600||0.547200||0.103920||0.042821||0.411870||0.332640||0.097030|
Historical Tax Information
General Income Fund Tax Information
Unitholders will generally be required to include in computing income for a particular taxation year of the unitholder the portion of the income of the Fund for a taxation year, including taxable dividends and net taxable capital gains, that is paid or becomes payable to the unitholder in that particular taxation year, whether such amount is payable in cash or in reinvested Units. Reinvested Units issued to a unitholder as a non-cash distribution of income will have an acquisition cost equal to the amount of such income, and this acquisition cost must be averaged with the adjusted cost base of all other Fund Units held by the unitholder as capital property in order to determine the respective adjusted cost base of each Fund Unit. Provided that appropriate designations are made by the Fund, such portion of its net taxable capital gains and taxable dividends from the Corporation as are paid or payable to a unitholder will effectively retain their character as taxable capital gains and taxable dividends, respectively, and will be treated as such in the hands of the unitholder for purposes of the Act.
No amount is to be reported in respect of Fund Units held within a RRSP, RRIF, RESP or DPSP.
Adjusted Cost Base ("ACB") Reduction
The portion of the distributions deemed a return of capital will reduce the unitholder's adjusted cost base ("ACB") of their Fund Units. The ACB of the Fund Units is used in calculating capital gains or losses on the disposition of Fund Units held as capital property by a unit holder. The ACB of each Fund Unit is reduced by the portion of distributions received as a return of capital. Should a taxpayer's ACB ever be reduced below zero, the negative amount is deemed to be a capital gain of the unitholder and the ACB is deemed to be nil.