Citadel SMaRT Fund
TSX : CRT.UN

Citadel SMaRT Fund

March 15, 2007 18:50 ET

Citadel SMaRT Fund 2006 Income Tax Information

CALGARY, ALBERTA--(CCNMatthews - March 15, 2007) - The following information is intended to assist holders of units of Citadel SMART Fund (the "Trust") (TSX:CRT.UN) 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.



Eligible Non-Eligible
Record Date Pay Date Income Dividends Dividends

31-Jan-06 15-Feb-06 $ 0.09402 $ 0.00004 $ 0.00020
28-Feb-06 15-Mar-06 $ 0.09402 $ 0.00004 $ 0.00020
31-Mar-06 17-Apr-06 $ 0.09402 $ 0.00004 $ 0.00020
30-Apr-06 15-May-06 $ 0.09402 $ 0.00004 $ 0.00020
31-May-06 15-Jun-06 $ 0.09402 $ 0.00004 $ 0.00020
30-Jun-06 14-Jul-06 $ 0.09402 $ 0.00004 $ 0.00020
31-Jul-06 15-Aug-06 $ 0.09402 $ 0.00004 $ 0.00020
31-Aug-06 15-Sep-06 $ 0.09402 $ 0.00004 $ 0.00020
30-Sep-06 16-Oct-06 $ 0.09402 $ 0.00004 $ 0.00020
31-Oct-06 15-Nov-06 $ 0.09402 $ 0.00004 $ 0.00020
30-Nov-06 15-Dec-06 $ 0.09402 $ 0.00004 $ 0.00020
31-Dec-06 15-Jan-07 $ 0.09402 $ 0.00004 $ 0.00020
(i) 31-Dec-06 31-Dec-06 $ - $ - $ -

$ 1.12824 $ 0.00048 $ 0.00240
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Less Total
Capital Increase Cash
Record Date Pay Date Gain To ACB Distribution

31-Jan-06 15-Feb-06 $ 0.37145 $ 0.18571 $ 0.28000
28-Feb-06 15-Mar-06 $ 0.37145 $ 0.18571 $ 0.28000
31-Mar-06 17-Apr-06 $ 0.37145 $ 0.18571 $ 0.28000
30-Apr-06 15-May-06 $ 0.37145 $ 0.18571 $ 0.28000
31-May-06 15-Jun-06 $ 0.37145 $ 0.18571 $ 0.28000
30-Jun-06 14-Jul-06 $ 0.37145 $ 0.18571 $ 0.28000
31-Jul-06 15-Aug-06 $ 0.37145 $ 0.18571 $ 0.28000
31-Aug-06 15-Sep-06 $ 0.37145 $ 0.18571 $ 0.28000
30-Sep-06 16-Oct-06 $ 0.37145 $ 0.18571 $ 0.28000
31-Oct-06 15-Nov-06 $ 0.37145 $ 0.18571 $ 0.28000
30-Nov-06 15-Dec-06 $ 0.37145 $ 0.18571 $ 0.28000
31-Dec-06 15-Jan-07 $ 0.37145 $ 0.18571 $ 0.28000
(i) 31-Dec-06 31-Dec-06 $ 0.32078 $ 0.32078 $ -

$ 4.77818 $ 2.54930 $ 3.3600
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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 standard gross-up and federal dividend tax credit rules. The T3 supplementary slips are prepared by Computershare Trust Company of Canada and/or investment dealers. Unitholders are advised to contact their investment dealer directly if they do not receive their T3 supplementary slip.

The increase to 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. For unitholders that held their units for the entire year, the total increase to their Adjusted Cost Base would be $2.54932 per unit.

(i) Special non-cash distribution

Unitholders were allocated $0.32078 of capital gains through a payment of a special non-cash distribution of $0.16039 cents per unit (originally estimated at $0.60 per unit) on December 31, 2006 to holders of trust units of the Trust on December 31, 2006. These trust units were distributed on a pro rata basis to unitholders of record on December 31, 2006 and is included in unitholders' income for the 2006 calendar year. Immediately after this pro rata distribution of trust units, the number of outstanding trust units were consolidated, such that each unitholder holds, following the consolidation, the same number of trust units as before the non-cash distribution. The special distribution was required in order to ensure that the Fund, as per its Declaration of Trust, was not liable to pay income taxes in respect of its current taxation year ended December 31, 2006.

Generally, a unitholder who holds units as capital property will be required to include the amount of the non-cash distribution in income and the amount of the non-cash distribution will be added to the adjusted cost basis of the units held by such unitholder. However, unitholders should contact their own tax advisors for advice with reference to their particular circumstances.

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

Contact Information

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