Avenir Diversified Income Trust
TSX : AVF.UN

Avenir Diversified Income Trust

March 30, 2007 20:01 ET

Avenir Diversified Income Trust Files Amended Canadian 2006 Income Tax Information

CALGARY, ALBERTA--(CCNMatthews - March 30, 2007) - Avenir Diversified Income Trust ("Avenir Trust") (TSX:AVF.UN) today provides Amended 2006 Canadian Tax information.

Based on the completion of the annual audit of 2006 results and 2006 tax information, Avenir Trust has determined that it must provide amended 2006 Canadian Tax information. The amendment is due to the recalculation of the capital gain portion of the Energy Services division spin-off in May 2006.

The information contained herein is based on Avenir's understanding of the Canadian Income Tax Act and is provided for general information purposes only. Unitholders should consult their tax advisors with respect to their particular circumstances.



Monthly Distributions (NO CHANGE from February 28, 2007 press release):

Distribution Return of Taxable
Record Date Payable Date Amount/Unit Capital Portion
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December 30, 2005 January 16, 2006 $ 0.12 $ 0.00 $ 0.12
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January 31, 2006 February 15, 2006 $ 0.12 $ 0.00 $ 0.12
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February 28, 2006 March 15, 2006 $ 0.12 $ 0.00 $ 0.12
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March 31, 2006 April 17, 2006 $ 0.12 $ 0.00 $ 0.12
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April 28, 2006 May 15, 2006 $ 0.12 $ 0.00 $ 0.12
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May 31, 2006 June 15, 2006 $ 0.12 $ 0.00 $ 0.12
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June 30, 2006 July 17, 2006 $ 0.083 $ 0.00 $ 0.083
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July 31, 2006 August 15, 2006 $ 0.083 $ 0.00 $ 0.083
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August 31, 2006 September 15, 2006 $ 0.083 $ 0.00 $ 0.083
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September 29, 2006 October 16, 2006 $ 0.083 $ 0.00 $ 0.083
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October 31, 2006 November 15, 2006 $ 0.083 $ 0.00 $ 0.083
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November 30, 2006 December 15, 2006 $ 0.083 $ 0.00 $ 0.083
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Total declared $ 1.218 $ 0.00 $ 1.218
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The regular monthly calculations have been completed on a cash basis, and therefore include the distributions declared by the Avenir Trust in December 2005 payable January 16, 2006, up to and including the November 2006 distribution payable December 15, 2006. Total 'regular' monthly distributions declared for this period totalled $1.218 per unit.

2006 Canadian Unitholder Tax Information

Avenir Trust has determined that for Canadian unitholders, regular monthly distributions paid in 2006 are to be 100% taxable with no tax deferred return of capital (ROC).

Canadian unitholders holding their Avenir Trust investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund or Deferred Profit Savings Plan should not report any income related to distributions on their 2006 income tax return. Unitholders holding their units outside such plans will receive a T3 Supplementary Information slip (T3), postmarked on or before March 31, 2007. Avenir Trust's Canadian unitholders who hold their units directly should receive a T3 from the Trust's transfer agent, Olympia Trust Company of Canada. Unitholders that hold their units through a broker or other intermediary should receive a T3 directly from their broker or intermediary and not from the transfer agent. Unitholders are to report the taxable portion of distributions as "other income" on their 2006 income tax return.

Distribution of Essential Energy Services Trust ("ESN.UN") Units to those on record May 30, 2006 (AMENDED from February 28, 2007 press release):

The spin-out of Avenir's Energy Services Division was similar to a special distribution in the form of units of ESN.UN. The amount of the distribution received in respect of each Avenir unit held by an Avenir unitholder was equal to the fair market value of the ESN.UN units received by such unitholder. The finalized fair market value of an ESN.UN unit was determined to be C$8.89, and this becomes the cost base of each ESN.UN unit received in the spin-out. Each Avenir unitholder, on the basis of receiving one ESN.UN unit for every two Avenir units held, effectively received a distribution equal to C$4.445 ( 1/2 of $8.89).

For Canadian Residents:

Of this ESN.UN special distribution:

44.4% or C$1.973 is return of capital which reduces the cost base of your Avenir units (previously reported as C$1.935)

55.6% or C$2.472 is a capital gain and is subject to 2006 capital gains tax treatment (previously reported as C$2.51)

Avenir Trust apologizes for any confusion or inconvenience this amendment may cause.

Avenir Trust is an income trust designed to provide sustainable distributions and growth from a diverse portfolio of operating assets in the sectors of energy, financial services and real estate. The resulting cash flow from these assets is distributed to unit holders on a monthly basis. The trust units of Avenir Trust trade on the TSX under the symbol AVF.UN. For further information on the Trust please go to our website at: www.avenirtrust.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Forward Looking Statements

Certain information regarding Avenir Diversified Income Trust set forth in this document, including management's assessment of the Trust's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Trust's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Trust's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide what, if any benefits to the Trust.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Avenir Diversified Income Trust
    William M. Gallacher
    President and CEO
    (403) 237-9949
    (403) 237-0903 (FAX)
    or
    Avenir Diversified Income Trust
    Michelle O'Grady
    Controller
    (403) 237-9949
    (403) 237-0903 (FAX)
    or
    Avenir Diversified Income Trust
    Suite 300, 808 - 1st Street S.W.
    Calgary, Alberta T2P 1M9
    Website: www.avenirtrust.com