Petrofund Energy Trust Provides Update on Canadian Federal Government Income Tax Treatment of Trusts.CALGARY, Alberta -- Petrofund Energy Trust (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :PTF PTF - Program Temporary Fix .UN) (AMEX AMEX See: American Stock Exchange :PTF) is pleased to announce that the consultation process initiated by the Canadian federal government regarding their paper titled "Tax and Other Issues Related to Publicly Listed Flow-Through Entities A flow-through entity (FTE) is a corporate legal entity where income "flows through" to investors (unitholders) in the form of regular cash distributions. The FTE is normally the operating arm of a holdings company or trust to which the earnings from operations are transferred as a " has ended, and that the government has announced they will not be changing the tax treatment of income trusts but will instead modify the personal income tax rate on dividends paid by Canadian corporations. Further information regarding the Canadian government's decision on this matter can be found on the government's website under the following link http://www.fin.gc.ca/news05/05-082e.html. This decision is a positive result for the income trust sector and eliminates the uncertainty surrounding the tax treatment of trusts. As a result, there is no change to the taxability of Petrofund's distributions for Resident and Non-Resident unitholders. Petrofund Energy Trust is a Calgary based royalty trust royalty trust An ownership interest in certain assets, generally crude oil or gas production and real estate. Unlike the usual corporate organization, a trust arrangement permits income and tax benefits to flow through to the individual owners. that acquires and manages producing oil and gas properties in Western Canada
Western Canada, commonly referred to as the West . The Trust pays its unitholders monthly cash distributions which are derived from the Trust's cash flow from these properties. Petrofund Energy Trust was founded in 1988 and was one of the first oil and gas royalty trusts in Canada. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events or future performance. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of the Trust. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed in the Trust's 2004 annual report, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. The Trust undertakes no obligation to update or revise any forward looking financial statements, except as required by applicable securities laws. PETROFUND ENERGY TRUST Jeffery E. Errico President and Chief Executive Officer Petrofund Energy Trust (TSX:PTF.UN) (AMEX:PTF) |
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