NAL Energy Corporation
TSX : NAE

NAL Energy Corporation

April 23, 2012 12:27 ET

NAL Energy Corporation Provides 2011 Tax Information and 2011 Year End Results Release Date

CALGARY, ALBERTA--(Marketwire - April 23, 2012) - NAL Energy Corporation ("NAL Energy" or the "Corporation") (TSX:NAE) provides the following tax information:

2011 Canadian Shareholder Tax Information

The following information is provided to assist individual Canadian shareholders of NAL in the preparation of their 2011 Income Tax Return and is not to be considered tax advice to any particular individual but rather, general information. Shareholders should consult their own legal tax advisors as to their particular tax consequences of holding NAL shares.

NAL Energy dividends declared in 2011 are designated as "eligible dividends" for Canadian income tax purposes.

The deadline for mailing T5 slips to shareholders as required by the Canada Revenue Agency (the "CRA") is on or before February 29, 2012.

For additional details on monthly distributions and dividends paid in years prior to 2011, please visit our website at: http://www.nalenergy.com/investors/dividends

2011 U.S. Shareholder Tax Information

The following information is provided to assist individual U.S. shareholders of NAL in the preparation of their 2011 income tax return. The information is of a general nature only and does not address U.S. state or local tax treatment, and is not intended to constitute legal or tax advice to any holder of NAL shares. U.S. investors should consult their own legal or tax advisors as to their particular tax consequences of holding NAL shares, including the proper U.S. federal income tax treatment of distributions from NAL.

For U.S. tax purposes, NAL has not elected to be a partnership and, according to its tax advisors, should be treated as a corporation by its U.S. investors. Under U.S. federal tax law, 100% of the Corporation's 2011 distributions should be considered dividends for U.S. income tax purposes.

NAL believes that the 2011 distributions paid to U.S. residents should be treated as "qualified dividends" under the Jobs and Growth Tax Relief Reconciliation Act of 2003 and, generally, these dividends should be eligible for the maximum tax rate of 15% applicable to "qualified dividends". However, the individual taxpayer's situation must be considered before making this determination.

Shareholders who are resident in the U.S. are subject to a 15% Canadian withholding tax on the distributions received from NAL. U.S. shareholders should receive an NR4 statement regarding, among other things, the aggregate distributions NAL paid for the year and the amount of Canadian withholding tax withheld from such distributions. The deadline for mailing NR4 slips to shareholders as required by the CRA is on or before April 2, 2012.

Canadian withholding taxes should generally qualify for a foreign tax credit for the purposes of computing U.S. federal income taxes, subject to certain limitations.

Non-Resident Withholding Tax Policy Change

In 2011, the CRA made changes to the level and type of information payors must obtain in order to withhold tax at treaty rates when making payments to non-residents. The address of the recipient of the payment was previously sufficient to establish entitlement to the reduced withholding rate under an applicable treaty. However, for any payments after December 31, 2011, additional information must be provided by the recipient in order to be entitled to the reduced withholding rate. If the additional information is not provided, any payments after December 31, 2011 will be subject to the 25% withholding rate.

The information required can be provided using one of the new forms issued by the CRA in 2011. While these forms are not mandatory, the information provided on such forms is necessary for determining whether the reduced withholding rate will apply or not. The equivalent information can be provided in a letter or other format. A completed form will expire on the earlier of a change in eligibility for treaty benefits and three years from the year the form is signed and dated. Completed forms should be provided to your broker (or other intermediary) or NAL's Trustee and Transfer Agent, Computershare Trust Company of Canada.

The new forms issued by the CRA are:

  • Form NR301 - "Declaration of Eligibility for Benefits under a tax treaty for a Non-Resident Taxpayer";
  • Form NR302 - "Declaration of Eligibility for Benefits under a tax treaty for a Partnership with Non-Resident Partners"; and
  • Form NR303 - "Declaration of Eligibility for Benefits under a tax treaty for a Hybrid Entity".

If the amount of Canadian withholding tax withheld is not the appropriate amount, please contact your broker or other intermediary as they are responsible for withholding the appropriate amount of tax.

2011 Year End and Fourth Quarter Results Release Date

NAL expects to release its 2011 year-end reserves and year-end financial and operating results on Wednesday, March 7, 2012 at 2:30 p.m. MDT (4:30 p.m. EST).

ABOUT NAL

NAL Energy Corporation generates returns for its shareholders by pursuing a strategy of acquiring, producing and selling crude oil, natural gas and natural gas liquids from assets based in southeastern Saskatchewan, central Alberta, and northeastern British Columbia.

Contact Information

  • NAL Energy Corporation
    Clayton Paradis
    Director, Investor Relations
    403.294.3620 or Toll Free: 888.223.8792
    403.515.3407 (FAX)
    ir@nal.ca
    www.nal.ca