Series S-1 Income Fund
TSX : SRC.UN

Series S-1 Income Fund

March 07, 2008 14:46 ET

Series S-1 Income Fund 2007 Income Tax Information

CALGARY, ALBERTA--(Marketwire - March 7, 2008) - The following information is intended to assist holders of units of Series S-1 Income Fund (TSX:SRC.UN) (the "Trust") in the preparation of their 2007 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.



Non- Return Total
Record Eligible Eligible Capital of Distri-
Date Pay Date Income Dividends Dividends Gain Capital bution

31-Jan-07 15-Feb-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
28-Feb-07 15-Mar-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
31-Mar-07 16-Apr-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
30-Apr-07 15-May-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
31-May-07 15-Jun-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
30-Jun-07 16-Jul-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
31-Jul-07 15-Aug-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
31-Aug-07 14-Sep-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
30-Sep-07 15-Oct-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
31-Oct-07 15-Nov-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
30-Nov-07 14-Dec-07 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
31-Dec-07 15-Jan-08 $0.04088 $ 0.00496 $ 0.00018 $0.02898 - $0.07500
31-Dec-07 15-Jan-08 - - - $0.10000 - $0.10000
31-Dec-07
31-Dec-07 (i) - - - $0.28700 - $0.28700
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$0.49056 $ 0.05952 $ 0.00216 $0.73476 $ - $1.28700
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Each unitholder will receive a T3 supplementary slip for 2007 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 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.

(i) Special non-cash distribution

Unitholders were allocated capital gains through a payment of a special non-cash distribution of $0.2978 per unit (originally estimated at $0.30 per unit) on December 31, 2007 to unitholders of the Trust as of December 31, 2007. These trust units were distributed on a pro rata basis to unitholders of record and are included in unitholders' income for the 2007 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 Trust, as per its Declaration of Trust, was not liable to pay income taxes in respect of its current taxation year ended December 31, 2007.

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 will be received and no amount would be required to be reported on the unitholder's personal tax return.

Contact Information

  • Series S-1 Income Fund
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    1-877-261-9674
    Website: www.citadelfunds.com