Trilogy Energy Trust

Trilogy Energy Trust

February 27, 2009 09:15 ET

Trilogy Energy Trust Advises on 2008 Canadian Income Tax Information

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2009) - Trilogy Energy Trust (TSX:TET.UN) ("TET" or the "Trust") is pleased to announce its 2008 tax information on distributions.

The following information is intended to assist in the preparation of a 2008 T1 Income Tax Return. It is intended for individual, Canadian resident unitholders who hold their TET trust units ("Units") as capital property. A separate release is provided to US individual unitholders to assist in reporting TET income for United States federal income tax purposes.

The information contained herein is based on TET's understanding of the Income Tax Act (Canada) and the regulations thereunder, and is provided for general information only. It is not intended to be an exhaustive discussion of all possible income tax considerations and does not constitute legal or tax advice to any holder of TET Units. Unitholders are advised to consult their personal tax advisors with respect to their particular circumstances.

Trust Units held within an RRSP, RRIF, RESP or DPSP

If a unitholder holds his or her Units in an RRSP, RRIF, RESP or DPSP, no amounts are required to be reported by the unitholder in the unitholder's 2008 T1 Income Tax Return.

Trust Units held outside of an RRSP, RRIF, RESP or DPSP

If a unitholder does not hold his or her Units in an RRSP, RRIF, RESP or DPSP the taxable portion of 2008 cash distributions must be reported in the unitholder's 2008 Income Tax Return. This taxable amount will be reported on a "T3 - Statement of Trust Income and Allocations and Designations" ("T3 Slip") that will be issued to the unitholder (i.e., "Other income" - Box 26 on the T3 Slip).

A unitholder's "adjusted cost base" ("ACB") of his or her Units will be reduced by the non-taxable portion of the 2008 cash distributions (i.e., "Amount resulting in cost base adjustment" - Box 42 on the T3 Slip). The ACB is used in calculating capital gains or losses on the disposition of Units if the unitholder holds his or her Units as "capital property". To the extent that the ACB of a Unit to a unitholder otherwise would be less than zero, the negative amount will be deemed to be a capital gain of the unitholder from the disposition of the Unit in the year in which the negative amount arises, and the ACB of the Unit to the unitholder at the commencement of the immediately following year will be nil.

If a unitholder held his or her Units with a broker or other intermediary and received cash distributions from the broker or other intermediary, the unitholder will receive a T3 Slip from the broker or intermediary. If a unitholder received cash distributions directly from the transfer agent, Computershare Trust Company of Canada, and not from a broker or intermediary, the unitholder will receive a T3 Slip from Computershare Trust Company of Canada. The deadline for mailing all T3 Slips is March 31, 2009.

The following provides supplementary information on the taxable and non-taxable breakdown of cash distributions per Unit paid by Trilogy Energy Trust with respect to record dates for the period January 31, 2008 - December 31, 2008 for Canadian Income Tax purposes. This taxable portion will be included in and reported on the unitholder's T3 Slip:

Taxable Resulting in Cost
Amount Base Adjustment
Distribution (Box 26) (Box 42)
Record Dates Payment Dates Paid Other Income Return of Capital

January 31 February 15 $ 0.07 $ 0.0686 $ 0.0014
February 29 March 17 $ 0.07 $ 0.0686 $ 0.0014
March 31 April 15 $ 0.07 $ 0.0686 $ 0.0014
April 30 May 15 $ 0.07 $ 0.0686 $ 0.0014
June 2 June 16 $ 0.10 $ 0.0980 $ 0.0020
June 30 July 15 $ 0.10 $ 0.0980 $ 0.0020
July 31 August 15 $ 0.10 $ 0.0980 $ 0.0020
September 2 September 15 $ 0.10 $ 0.0980 $ 0.0020
September 30 October 15 $ 0.10 $ 0.0980 $ 0.0020
October 31 November 17 $ 0.10 $ 0.0980 $ 0.0020
December 1 December 15 $ 0.10 $ 0.0980 $ 0.0020
December 31 January 15 $ 0.10 $ 0.0980 $ 0.0020
$ 1.08 $ 1.0584 $ 0.0216

(1) Columns may not add due to rounding

About TET

TET is a petroleum and natural gas-focused Canadian energy trust. The Units are listed on the Toronto Stock Exchange under the symbol "TET.UN".

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Trilogy Energy Trust
    J.H.T. (Jim) Riddell
    President and Chief Executive Officer
    (403) 290-2900
    Trilogy Energy Trust
    M.G. (Mike) Kohut
    Chief Financial Officer
    (403) 290-2900
    Trilogy Energy Trust
    J. B. (John) Williams
    Chief Operating Officer
    (403) 290-2900
    Trilogy Energy Trust
    1400 - 332 - 6th Avenue S.W.
    Calgary, Alberta T2P 0B2
    (403) 290-2900
    (403) 263-8915 (FAX)