CALGARY, ALBERTA - Feb. 26, 2007 /CNW/ - The following information is intended to assist holders of trust units (the "Newalta Units") of Newalta Income Fund (TSX:NAL.UN) ("Newalta") in the preparation of their 2006 T1 Income Tax Return.
The information contained herein is based on Newalta's understanding of the Income Tax Act (Canada) (the "Tax Act") and the regulations thereunder and is provided for general information only. 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
No amounts are required to be reported on the 2006 T1 Income Tax Return where Newalta Units are held within an RRSP, RRIF, RESP or DPSP.
Trust Units held outside of an RRSP, RRIF, RESP or DPSP
Unitholders who held their Newalta Units outside of an RRSP, RRIF, RESP or DPSP, through a broker or other intermediary will receive a T3 Supplementary Information slip directly from their broker or intermediary, not from the transfer agent or Newalta.
Registered holders of Newalta Units who did not hold their Newalta Units through a broker or intermediary will receive a T3 Supplementary Information slip directly from Valiant Trust Company.
The attached "Schedule 1" includes supplementary information on the Canadian tax characterization of the 2006 distributions declared and is shown on a per unit basis. Under Paragraph 12(1)(m) of the Tax Act, the taxable amount allocated by Newalta in 2006 to the holders of Newalta Units must be reported by the unitholders in their 2006 Income Tax Return.
Accordingly, the taxable amount of distributions (i.e., "Other Income" Box (26) and "Dividend Income" Box (49) on the T3 Supplementary Information slip) with respect to record dates from January 1, 2006 up to and including December 31, 2006, are included in your T3 Supplementary Information.
In accordance with subsection 89(14) of the Income Tax Act (Canada), the amounts specified as dividend income in Schedule 1 will, by virtue of subsection 104(19) of the Income Tax Act (Canada), be an eligible dividend within the meaning of subsection 89(1) of the Income Tax Act (Canada) in respect of each trust unit.
The deadline for mailing all T3 Supplementary Information slips as required by the Canada Revenue Agency is March 31, 2007.
Reduction to Adjusted Cost Base
Holders of Newalta Units are required to reduce the Adjusted Cost Base of their Newalta Units by the return of capital amount. The Adjusted Cost Base is used in calculating capital gains or losses on the disposition of Newalta Units if the owner holds the Newalta Units as capital property.
Schedule 1
Newalta Income Fund
2006 - T3 Information for Canadian Residents
The following table outlines the breakdown of distributions declared per Newalta Unit with respect to record dates for the period January 1, 2006 up to and including December 31, 2006 for Canadian income tax purposes.
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Other
Distribution Income
Declared (Box 26)
Record Date Payment Date cents/unit cents/unit
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January 31, 2006 February 15, 2006 16.5 12.32
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February 28, 2006 March 15, 2006 16.5 12.32
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March 31, 2006 April 17, 2006 16.5 12.32
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April 28, 2006 May 15, 2006 16.5 12.32
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May 31, 2006 June 15, 2006 18.5 13.81
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June 30, 2006 July 17, 2006 18.5 13.81
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July 31, 2006 August 15, 2006 18.5 13.81
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August 31, 2006 September 15, 2006 18.5 13.81
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September 29, 2006 October 16,2006 18.5 13.81
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October 31, 2006 November 15, 2006 18.5 13.81
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November 30, 2006 December 15, 2006 18.5 13.81
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December 31, 2006 January 15, 2007 18.5 13.81
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TOTAL CENTS PER UNIT 214.0 159.76
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Dividend
Income Return of
(Box 49) Capital
Record Date Payment Date cents/unit cents/unit
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January 31, 2006 February 15, 2006 3.63 0.55
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February 28, 2006 March 15, 2006 3.63 0.55
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March 31, 2006 April 17, 2006 3.63 0.55
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April 28, 2006 May 15, 2006 3.63 0.55
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May 31, 2006 June 15, 2006 4.07 0.62
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June 30, 2006 July 17, 2006 4.07 0.62
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July 31, 2006 August 15, 2006 4.07 0.62
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August 31, 2006 September 15, 2006 4.07 0.62
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September 29, 2006 October 16,2006 4.07 0.62
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October 31, 2006 November 15, 2006 4.07 0.62
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November 30, 2006 December 15, 2006 4.07 0.62
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December 31, 2006 January 15, 2007 4.07 0.62
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TOTAL CENTS PER UNIT 47.08 7.16
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Newalta Income Fund is one of Canada's leading industrial waste management and environmental services companies and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, forestry, manufacturing, mining, oil and gas, petrochemical, pulp and paper, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta Income Fund's units trade on the TSX as NAL.UN. For more information, visit www.newalta.com.