Bonavista Energy Trust 2003 U.S. Income Tax Information.Energy Editors/Business Editors CALGARY, Alberta--(BUSINESS WIRE)--March 8, 2004 The following information is being provided to assist U.S. individual Unitholders of Bonavista Energy Trust ("Bonavista") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BNP BNP B-type natriuretic peptide, brain natriuretic peptide Physiology A 32-residue peptide hormone produced predominantly in the ventricles, secreted in response to fluid overload–eg, CHF. See Atrial natriuretic peptide. .UN) in reporting distributions received from Bonavista for the period July 2, 2003 to December 31, 2003 on their Internal Revenue Service ("IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ") Form 1040 - U.S. Individual Income Tax Return ("Form 1040") for 2003. Bonavista Trust Units held outside of a Qualified Retirement Plan For distributions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 2003, 100% of the distributions are taxable as dividends to the Unitholder for U.S. federal income tax purposes. After consulting with its tax advisors A tax advisor is a financial expert especially trained in tax law. Some countries require tax advisors to verify the balance sheets of companies above a certain size. Individuals usually require tax advisors to minimize taxation, to avoid learning the details of tax law in , Bonavista believes that its distributions should be considered "Qualified Dividends" under the Jobs and Growth Tax Relief Reconciliation Act of 2003 and should be eligible for the reduced U.S. dividend tax rate. However, the individual taxpayer's situation must be considered before making this determination. Qualified Dividends should be reported on Line 9(b) of the IRS Form 1040, unless the facts of the U.S. individual Unitholder determines otherwise. Page 23 of the IRS 2003 Form 1040 instruction booklet provides examples of individual situations where the distributions would not be "Qualified Dividends". Where the distributions are not considered "Qualified Dividends" due to an individual's situation, the amount should be reported on Schedule B, Part II - Ordinary Dividends and Line 9 (a) of your IRS Form 1040. For the non-taxable portion of distributions, if any, ("Non-Taxable Return of Capital"), a taxpayer must reduce the cost (or other basis) by the amount of non-taxable distributions in calculating the gain or loss on sale of Bonavista Units. If the amount of "Non-Taxable Return of Capital" exceeds your cost (or other basis), report the excess as a capital gain. U.S. Unitholders are encouraged to utilize the Qualified Dividends and Capital Gain Tax Worksheet provided by the IRS to determine the amount of tax applicable. Canadian withholding taxes The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. that have been withheld from your distributions should be reported on Form 1116 "Foreign Tax Credit (Individual, Estate or Trust)". Information regarding the amount of Canadian tax withheld relating to 2003 distributions should be available through your investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and or other intermediary and is not available from Bonavista Energy Trust. Bonavista Trust Units held within a Qualified Retirement Plan There should be no amount that is required to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report as income on an IRS Form 1040 where the Bonavista Trust Units are held in a Qualified Retirement Plan. The information in this release is not meant to be an exhaustive discussion of all possible U.S. income tax considerations, but a general guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. and is not intended to be legal or tax advice to any particular holder or potential holder of Bonavista Energy Trust Units. Holders or potential holders of Trust Units should consult their own tax advisors as to their particular tax consequences of holding Trust Units. Bonavista Energy Trust is a natural gas weighted energy trust which is committed to maintaining its emphasis on operating high quality oil and natural gas properties, delivering consistent distributions to unitholders and ensuring financial strength and sustainability. |
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