Citadel Premium Income Fund
TSX : CPF.UN

Citadel Premium Income Fund

March 14, 2007 20:15 ET

2006 Income Tax Information for Citadel Premium Income Fund, MYDAS Fund, Citadel Multi-Sector Income Fund and Citadel Income & Growth Fund

CALGARY, ALBERTA--(CCNMatthews - March 14, 2007) - The following information is intended to assist holders of units of Citadel Premium Income Fund (TSX:CPF.UN) (the "Trust") in the preparation of their 2006 Income Tax Return. This summary table below is directed to a unitholder who, for the purposes of the Income Tax Act (Canada) is a resident of Canada and holds the units as capital property.



Record Eligible Non-Eligible
Date Pay Date Income Dividends Dividends

31-Jul-06 15-Aug-05 $ 0.0526 $ 0.0027 $ 0.0010
31-Aug-06 15-Sep-05 $ 0.0526 $ 0.0027 $ 0.0010
30-Sep-06 16-Oct-05 $ 0.0526 $ 0.0027 $ 0.0010
31-Oct-06 15-Nov-05 $ 0.0526 $ 0.0027 $ 0.0010
30-Nov-06 15-Dec-05 $ 0.0526 $ 0.0027 $ 0.0010
31-Dec-06 15-Jan-07 $ 0.0526 $ 0.0027 $ 0.0010
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$ 0.3156 $ 0.0162 $ 0.0060
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Less Total
Record Capital Increase to Cash
Date Pay Date Gain ACB Distribution

31-Jul-06 15-Aug-05 $ 0.0521 $ 0.0234 $ 0.0850
31-Aug-06 15-Sep-05 $ 0.0521 $ 0.0234 $ 0.0850
30-Sep-06 16-Oct-05 $ 0.0521 $ 0.0234 $ 0.0850
31-Oct-06 15-Nov-05 $ 0.0521 $ 0.0234 $ 0.0850
30-Nov-06 15-Dec-05 $ 0.0521 $ 0.0234 $ 0.0850
31-Dec-06 15-Jan-07 $ 0.0521 $ 0.0234 $ 0.0850
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$ 0.3126 $ 0.1404 $ 0.5100
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Each Unitholder will receive a T3 supplementary slip for 2006 that will indicate the amount of "Other Income" - Box 26 ,"Eligible Dividends" - Box 49, "Non-Eligible Dividends" - Box 23, and "Capital Gains" - Box 21 that are to be included in their tax return. The dividends will be subject to the gross-up and federal dividend tax credit rules. The T3 supplementary slips are prepared by Computershare Trust Company of Canada and/or investment dealers.

The Increase to the adjusted cost base ("ACB") to the Unitholder represents a portion of the non-taxable component of capital gains retained by the Trust and results in an increase to the adjusted cost base of the Unitholder's units.

If the Units were held within a RRSP, DPSP, or RRIF, then no T3 slip will be received and no amount would be required to be reported on the Unitholder's personal tax return.

Effective July 20, 2006, Citadel Premium Income Fund was created as a result of the merger of MYDAS Fund, Citadel Multi-Sector Income Fund and Citadel Income & Growth Fund.

MYDAS FUND

The following information is intended to assist holders of units of MYDAS Fund (the "Trust") in the preparation of their 2006 Income Tax Return. This summary table below is directed to a unitholder who, for the purposes of the Income Tax Act (Canada) is a resident of Canada and holds the units as capital property.



Record Eligible Non-Eligible
Date Pay Date Income Dividends Dividends

31-Jan-06 15-Feb-06 $ 0.0408 $ 0.0022 $ 0.0004
28-Feb-06 15-Mar-06 $ 0.0408 $ 0.0022 $ 0.0004
31-Mar-06 17-Apr-06 $ 0.0408 $ 0.0022 $ 0.0004
30-Apr-06 15-May-06 $ 0.0408 $ 0.0022 $ 0.0004
31-May-06 15-Jun-06 $ 0.0408 $ 0.0022 $ 0.0004
30-Jun-06 14-Jul-06 $ 0.0408 $ 0.0022 $ 0.0004
20-Jul-06 20-Jul-06 $ 0.1853 $ 0.0101 $ 0.0019
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$ 0.4301 $ 0.0233 $ 0.0043
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Record Capital Return of Total
Date Pay Date Gain Capital Distribution

31-Jan-06 15-Feb-06 $ 0.0666 $ - $ 0.1100
28-Feb-06 15-Mar-06 $ 0.0666 $ - $ 0.1100
31-Mar-06 17-Apr-06 $ 0.0666 $ - $ 0.1100
30-Apr-06 15-May-06 $ 0.0666 $ - $ 0.1100
31-May-06 15-Jun-06 $ 0.0666 $ - $ 0.1100
30-Jun-06 14-Jul-06 $ 0.0666 $ - $ 0.1100
20-Jul-06 20-Jul-06 $ 0.3027 $ - $ 0.5000
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$ 0.7023 $ 0.0000 $ 1.1600
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Each Unitholder will receive a T3 supplementary slip for 2006 that will indicate the amount of "Other Income" - Box 26 ,"Eligible Dividends" - Box 49, "Non-Eligible Dividends" - Box 23, "Capital Gains" - Box 21 and "Return of Capital" - Box 42 that are to be included in their tax return. The dividends will be subject to the gross-up and federal dividend tax credit rules. The T3 supplementary slips are prepared by Computershare Trust Company of Canada and/or investment dealers.

The return of capital to the Unitholder is a non-taxable amount and will reduce the Adjusted Cost Base of the Unitholder's Units.

If the Units were held within a RRSP, DPSP, or RRIF, then no T3 slip will be received and no amount would be required to be reported on the Unitholder's personal tax return.

CITADEL MULTI-SECTOR INCOME FUND

The following information is intended to assist holders of units of Citadel Multi-Sector Income Fund (the "Trust") in the preparation of their 2006 Income Tax Return. This summary table below is directed to a unitholder who, for the purposes of the Income Tax Act (Canada) is a resident of Canada and holds the units as capital property.



Record Eligible Non-Eligible
Date Pay Date Income Dividends Dividends

31-Jan-06 15-Feb-06 $ 0.0134 $ 0.0038 $ 0.0011
28-Feb-06 15-Mar-06 $ 0.0134 $ 0.0038 $ 0.0011
31-Mar-06 17-Apr-06 $ 0.0134 $ 0.0038 $ 0.0011
30-Apr-06 15-May-06 $ 0.0134 $ 0.0038 $ 0.0011
31-May-06 15-Jun-06 $ 0.0134 $ 0.0038 $ 0.0011
30-Jun-06 14-Jul-06 $ 0.0134 $ 0.0038 $ 0.0011
20-Jul-06 20-Jul-06 $ 0.0403 $ 0.0114 $ 0.0034
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$ 0.1207 $ 0.0342 $ 0.0100
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Record Capital Return of Total
Date Pay Date Gain Capital Distribution

31-Jan-06 15-Feb-06 $ 0.0650 - $ 0.0833
28-Feb-06 15-Mar-06 $ 0.0650 - $ 0.0833
31-Mar-06 17-Apr-06 $ 0.0650 - $ 0.0833
30-Apr-06 15-May-06 $ 0.0650 - $ 0.0833
31-May-06 15-Jun-06 $ 0.0650 - $ 0.0833
30-Jun-06 14-Jul-06 $ 0.0650 - $ 0.0833
20-Jul-06 20-Jul-06 $ 0.1949 - $ 0.2500
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$ 0.5849 - $ 0.7498
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Each Unitholder will receive a T3 supplementary slip for 2006 that will indicate the amount of "Other Income" - Box 26 ,"Eligible Dividends" - Box 49, "Non-Eligible Dividends" - Box 23, "Capital Gains" - Box 21 and "Return of Capital" - Box 42 that are to be included in their tax return. The dividends will be subject to the gross-up and federal dividend tax credit rules. The T3 supplementary slips are prepared by Computershare Trust Company of Canada and/or investment dealers.

The return of capital to the Unitholder is a non-taxable amount and will reduce the Adjusted Cost Base of the Unitholder's Units.

If the Units were held within a RRSP, DPSP, or RRIF, then no T3 slip will be received and no amount would be required to be reported on the Unitholder's personal tax return.

CITADEL INCOME & GROWTH FUND

The following information is intended to assist holders of units of Citadel Income & Growth Fund (the "Trust") in the preparation of their 2006 Income Tax Return. This summary table below is directed to a unitholder who, for the purposes of the Income Tax Act (Canada) is a resident of Canada and holds the units as capital property.



Record Eligible Non-Eligible
Date Pay Date Income Dividends Dividends

31-Jan-06 15-Feb-06 $ 0.009400 $ 0.0046 $ 0.0005
28-Feb-06 15-Mar-06 $ 0.009400 $ 0.0046 $ 0.0005
31-Mar-06 17-Apr-06 $ 0.009400 $ 0.0046 $ 0.0005
30-Apr-06 15-May-06 $ 0.009400 $ 0.0046 $ 0.0005
31-May-06 15-Jun-06 $ 0.009400 $ 0.0046 $ 0.0005
30-Jun-06 14-Jul-06 $ 0.009400 $ 0.0046 $ 0.0005
20-Jul-06 20-Jul-06 $ 0.009400 $ 0.0046 $ 0.0005
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$ 0.06580 $ 0.0322 $ 0.0035
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Record Capital Return of Total
Date Pay Date Gain Capital Distribution

31-Jan-06 15-Feb-06 $ 0.0563 $ - $ 0.0708
28-Feb-06 15-Mar-06 $ 0.0563 $ - $ 0.0708
31-Mar-06 17-Apr-06 $ 0.0563 $ - $ 0.0708
30-Apr-06 15-May-06 $ 0.0563 $ - $ 0.0708
31-May-06 15-Jun-06 $ 0.0563 $ - $ 0.0708
30-Jun-06 14-Jul-06 $ 0.0563 $ - $ 0.0708
20-Jul-06 20-Jul-06 $ 0.0563 $ - $ 0.0708
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$ 0.3941 $ - $ 0.4956
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Each Unitholder will receive a T3 supplementary slip for 2006 that will indicate the amount of "Other Income" - Box 26 ,"Eligible Dividends" - Box 49, "Non-Eligible Dividends" - Box 23, "Capital Gains" - Box 21 and "Return of Capital" - Box 42 that are to be included in their tax return. The dividends will be subject to the gross-up and federal dividend tax credit rules. The T3 supplementary slips are prepared by Computershare Trust Company of Canada and/or investment dealers.

The return of capital to the Unitholder is a non-taxable amount and will reduce the Adjusted Cost Base of the Unitholder's Units.

If the Units were held within a RRSP, DPSP, or RRIF, then no T3 slip will be received and no amount would be required to be reported on the Unitholder's personal tax return.

Contact Information

  • Citadel Premium Income Fund
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    1-877-261-9674
    Website: www.citadelfunds.com