Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

March 17, 2010 09:07 ET

Canexus Income Fund Provides U.S. Tax Information

CALGARY, ALBERTA--(Marketwire - March 17, 2010) - The following information is being provided to assist U.S. individual unitholders in reporting distributions received from Canexus Income Fund (TSX:CUS.UN) (the "Fund") during 2009.

In consultation with its U.S. tax advisors, the Fund believes that the units of the Fund more likely than not will be properly classified as equity in a corporation, rather than debt, for U.S. federal income tax purposes and that distributions paid to individual U.S. unitholders will more likely than not be "qualified dividends" for U.S. federal income tax purposes. As such, the portion of the distributions made during 2009 that are considered dividends for U.S. federal income tax purposes should qualify for the reduced rate of tax applicable to long-term capital gains (where the holder meets certain criteria).

Provided the 2009 Fund distributions are considered to be qualified dividends as noted above, the Fund has determined that 100 percent of distributions paid during the year will be taxable for U.S. tax purposes as "qualified dividends" with no return of capital.

The Fund has not received an IRS letter ruling or a formal tax opinion from its tax advisors on these matters. U.S. unitholders should consult their individual tax advisors.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and one in South America are reliable, low-cost, strategically-located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize unitholder returns and delivers high-quality products and services to its customers. Canexus units and convertible debentures trade on the Toronto Stock Exchange under the symbol CUS. More information about Canexus is available at www.canexus.ca.

Contact Information

  • Canexus Limited
    Gary Kubera
    President and CEO
    (403) 571-7300
    or
    Canexus Limited
    Richard McLellan
    CFO
    (403) 571-7300
    www.canexus.ca