The following information is intended to assist individual
Canadian unitholders of Boralex Power Income
Fund (the “Fund”) in the preparation of
their Income Tax Return. Unitholders who reside in jurisdictions
other than Canada should consult their tax advisors
with respect to the tax implications of the cash distributions.
Trust Units held within an RRSP, RRIF, RESP
or DPSP
No amounts are required to be reported on the Income
Tax Return when the Boralex Power Income Fund trust
units are held within an RRSP, RRIF, RESP or DPSP.
Trust units held outside of an RRSP, RRIF,
RESP or DPSP
Unitholders who hold their Boralex Power Income Fund
trust units outside of an RRSP, RRIF, RESP or DPSP,
through a broker or other intermediary and received
cash distributions will receive ‘‘T3 Supplementary’’
slips directly from their broker or intermediary.
The taxable amount of cash distributions (i.e. ‘‘Other
Income’’ Box (26) and ‘‘Actual
amount of dividends’’ Box (49), if any,
on the T3 slips) with respect to record dates in any
fiscal period will be included in your ‘‘T3
Supplementary’’. Taxable amounts allocated
by the Fund to the unitholders must be reported by the
unitholders in their Income Tax Return for each taxation
year.
The portion of the distributions that are considered
tax deferred will generally not be included in the computation
of taxable income until a Unitholder sells its units.
Refer to the “Adjusted Cost Base” section
below for further explanations.
Boralex Power Income Fund anticipates that 50%
of its cash distributions paid in 2008 will be tax-deferred
to the unitholders and that approximately 25% will be dividend income. Boralex Power Income Fund will make
available the actual taxable portion of the 2008 cash
distributions around February 28, 2009. Taxable amounts
allocated by the Fund to the unitholders will have to
be reported by the unitholders in their Income Tax Return.
The deadline, imposed to your broker or other intermediary,
for mailing all ‘‘T3 Supplementary’’
information slips as required by Canada Customs and
Revenue Agency is March 31, 2009.
The following table summarizes income tax information for Canadian residents:
| Record date |
Payment date |
Distribution per Unit |
Return of Capital |
% |
Dividend Income |
% |
Other Taxable Income |
% |
Capital Gain |
% |
| January 31, 2007 | February 21, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| February 28, 2007 | March 21, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| March 30, 2007 | April 23, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| April 30, 2007 | May 22, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| May 31, 2007 | June 21, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| June 29, 2007 | July 23, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| July 31, 2007 | August 21, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| August 31, 2007 | September 21, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| September 28, 2007 | October 22, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| October 31, 2007 | November 21, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| November 30, 2007 | December 21, 2007 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
| December 31, 2007 | January 21, 2008 | $0.0750 | $0.03587 | 48% | $0.02322 | 31% | $0.01328 | 18% | $0.00263 | 3% |
 | |
| | | $0.9000 | $0.43044 | | $0.27864 | | $0.15936 | | $0.03156 | |
Summary of tax information for Canadian unitholders of Boralex Power Income Fund
Reduction of Adjusted Cost Base (Illustration)
|
Holders of Boralex Power Income Fund units are required
to reduce the Adjusted Cost Base of their units. This
reduction represents the cumulative return of capital
amount and is equal to the cumulative cash received
from cash distributions minus cumulative taxable amounts
reported on their T3 slips.
The adjusted Cost Base is used in calculating capital
gains or losses on the disposition of the trust units
if the owner holds the trust units as a capital property.
The following table illustrates the reduction of the
Adjusted Cost Base per unit based on cash distributions
paid by the Fund with respect to record dates for the
period January 31, 2003 – December 31, 2003 for
Canadian Income Tax purposes. The assumption used is
that the unit was purchased on January 1, 2003 at an
initial cost of ten dollars.
Table - Reduction of Adjusted Cost Base (Illustration)
|
| Period |
Payment
Date |
Total
Distribution Paid |
Return of
Capital Amount |
Adjusted
Cost Base |
| |
| Initial Cost Base – January
1, 2003 (assumption) |
$10.00
|
| January 31, 2003 |
February 21, 2003 |
$0.0729 |
$0.0583 |
$9.94 |
| February 28, 2003 |
March 21, 2003 |
$0.0729 |
$0.0583 |
$9.88 |
| March 31, 2003 |
April 21, 2003 |
$0.0729 |
$0.0583 |
$9.83 |
| April 30, 2003 |
May 21, 2003 |
$0.0729 |
$0.0583 |
$9.77 |
| May 30, 2003 |
June 23, 2003 |
$0.0729 |
$0.0583 |
$9.71 |
| June 31, 2003 |
July 21, 2003 |
$0.0729 |
$0.0583 |
$9.65 |
| July 31, 2003 |
August 21, 2003 |
$0.0729 |
$0.0583 |
$9.59 |
| August 29, 2003 |
September 22, 2003 |
$0.0729 |
$0.0583 |
$9.53 |
| September 30, 2003 |
October 21, 2003 |
$0.0729 |
$0.0583 |
$9.48 |
| October 31, 2003 |
November 21, 2003 |
$0.0750 |
$0.0600 |
$9.42 |
| November 28, 2003 |
December 22, 2003 |
$0.0750 |
$0.0600 |
$9.36 |
| December 31, 2003 |
January 21, 2004 |
$0.0750 |
$0.0600 |
$9.30 |
| |
| Adjusted Cost Base – December
31, 2003 |
|
|
$9.30
|
|
