CALGARY, ALBERTA - Feb. 28, 2006 /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 2005 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 2005 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 2005 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 2005 to the holders of Newalta Units must be reported by the unitholders in their 2005 Income Tax Return.
Accordingly, the taxable amount of distributions (i.e., "Other Income" Box (26) and "Dividend Income" Box (23) on the T3 Supplementary Information slip) with respect to record dates from January 1, 2005 up to and including December 31, 2005, are included in your T3 Supplementary Information. The deadline for mailing all T3 Supplementary Information slips as required by the Canada Revenue Agency is March 31, 2006.
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
2005 - 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,
2005 up to and including December 31, 2005 for Canadian income tax
purposes.
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Other Dividend Return
Distribution Income Income of
Declared (Box 26) (Box 23) Capital
cents/ cents/ cents/ cents/
Record Date Payment Date unit unit unit unit
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January 31, 2005 February 15, 2005 12.5 8.71 3.67 0.12
February 28, 2005 March 15, 2005 12.5 8.71 3.67 0.12
March 31, 2005 April 15, 2005 15.0 10.46 4.40 0.14
April 29, 2005 May 16, 2005 15.0 10.46 4.40 0.14
May 31, 2005 June 15, 2005 15.0 10.46 4.40 0.14
June 30, 2005 July 15, 2005 15.0 10.46 4.40 0.14
July 29, 2005 August 15, 2005 15.0 10.46 4.40 0.14
August 31, 2005 September 15, 2005 15.0 10.46 4.40 0.14
September 30, 2005 October 17, 2005 15.0 10.46 4.40 0.14
October 31, 2005 November 15, 2005 15.0 10.46 4.40 0.14
November 30, 2005 December 15, 2005 16.5 11.50 4.85 0.15
December 31, 2005 January 16, 2006 16.5 11.50 4.85 0.15
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TOTAL CENTS PER UNIT 178.0 124.10 52.24 1.66
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Newalta Income Fund has delivered dynamic profitable growth and generated average revenue growth of 30 percent per year since 1993. Newalta, one of Canada's largest industrial waste management companies, focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. Newalta also provides environmentally sound disposal of solid, non-hazardous industrial waste. With 1,500 talented people and a network of 56 facilities, Newalta serves corporations 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. For more information, visitwww.newalta.com.