Fording Canadian Coal Trust
TSX : FDG.UN
NYSE : FDG

Fording Canadian Coal Trust

February 27, 2008 19:59 ET

Fording Reports Tax Information for 2007 Distributions to Unitholders

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2008) - Fording Canadian Coal Trust (the "Trust") (TSX:FDG.UN) (NYSE:FDG) today reports the following income tax information for cash distributions declared in 2007 for unitholders resident in Canada and paid in 2007 for unitholders resident in the United States. The following information is provided for general information only and should not be considered tax or legal advice to any particular existing or potential holder of Trust units. Unitholders are strongly urged to consult their own tax and legal advisors with respect to their particular circumstances.

Tax Information for Unitholders Resident in Canada

The following information is based on the Trust's understanding of the Income Tax Act (Canada) and regulations thereunder. T3 Statement of Trust Income Allocations and Designations forms are expected to be available by March 31, 2008.

The following table provides the breakdown of cash distributions declared in 2007 in Canadian dollars. The stated amounts are on a per-unit basis and reflect the units outstanding when the payments were declared.



----------------------------------------------------------------------------
CDN$ Per Unit
----------------------------------------------------------------------------
Actual
Amount of Other Return of
Eligible Taxable Capital Total
Dividends Income (tax Distribution
Record Date Payment Date (taxable) (taxable) deferred) Paid
----------------------------------------------------------------------------
Mar. 30, 2007 Apr. 16, 2007 $ 0.01012 $ 0.62255 $ 0.01733 $ 0.65
----------------------------------------------------------------------------
Jun. 29, 2007 Jul. 16, 2007 0.01012 0.62255 0.01733 0.65
----------------------------------------------------------------------------
Sept. 28, 2007 Oct. 15, 2007 0.00934 0.57467 0.01599 0.60
----------------------------------------------------------------------------
Dec. 31, 2007 Jan. 15, 2008 0.00825 0.50762 0.01413 0.53
----------------------------------------------------------------------------


The "Actual Amount of Eligible Dividends" amount is dividend income that is taxable to unitholders. In general, eligible dividends are entitled to a higher gross-up and dividend tax credit, attracting a lower effective income tax rate than non-eligible dividends. The "Other Taxable Income" amount is the portion of the distributions that is to be included in the taxable income of unitholders. The "Return of Capital" amount of the distributions is not taxable but should be deducted from the adjusted cost base of unitholder's units of the Trust. All three amounts will be reported on the T3 Statement of Trust Income Allocations and Designations.

Tax Information for Unitholders Resident in the United States

Distributions paid by the Trust in the 2007 calendar year should be considered foreign-source dividend income under U.S. federal income tax principles, reportable on a Form 1099. Providing that applicable holder-level requirements are met, these distributions should be "qualified dividends," eligible for taxation at reduced rates under U.S. federal income tax legislation.

Distributions paid by the Trust to U.S. unitholders are generally subject to Canadian withholding tax of 15%. U.S. unitholders are advised to seek advice from their tax advisor for the tax treatment of distributions.

Cash distributions in 2007 are reported as follows in U.S. dollars. The stated amounts are on a per-unit basis and reflect the units outstanding when the payments were made.



----------------------------------------------------------------------------
US$ Per Unit
----------------------------------------------------------------------------
Qualified Dividends Withholding Tax
Record Date Payment Date (taxable) Deducted in Canada
----------------------------------------------------------------------------
Dec. 29, 2006 Jan. 15, 2007 $ 0.815240 $ 0.122286
----------------------------------------------------------------------------
Mar. 30, 2007 Apr. 16, 2007 0.563800 0.08457
----------------------------------------------------------------------------
Jun. 29, 2007 Jul. 16, 2007 0.611250 0.0916875
----------------------------------------------------------------------------
Sept. 28, 2007 Oct. 15, 2007 0.602230 0.0903345
----------------------------------------------------------------------------


It is possible that the U.S. dollar amount was different for non-registered/beneficial unitholders receiving their payment from an intermediary or brokerage firm using different exchange rates.

The distribution payable to record holders on December 31, 2007 and paid on January 15, 2008 to unitholders resident in the United States will be reported for the 2008 calendar year.

About Fording

Fording Canadian Coal Trust is an open-ended mutual fund royalty trust. The Trust makes quarterly distributions to unitholders using royalties received from its 60% interest in the metallurgical coal operations of the Elk Valley Coal Partnership. Elk Valley Coal Partnership is the world's second largest exporter of metallurgical coal, supplying high-quality coal products to the international steel industry. The Trust's shares are traded on the Toronto Stock Exchange under the ticker symbol FDG.UN and on the New York Stock Exchange under the symbol FDG.

Contact Information

  • Fording Canadian Coal Trust
    Colin Petryk
    Director, Investor Relations
    (403) 260-9823
    or
    Fording Canadian Coal Trust
    Najda Dupanovic
    Administrative Assistant
    (403) 260-9892
    Email: investors@fording.ca
    Website: www.fording.ca