2007 TAX INFORMATION
The following information is intended to assist unitholders of Wajax Income Fund (or the
"Fund"ť) in the preparations of their 2007 Canadian Income Tax Return. All unitholders should receive a T3 Supplementary tax slip prior to March 31, 2008.
Distributions
The following table summarizes the per unit cash and non-cash distributions of the Wajax Income Fund for 2007 and the treatment of the distributions for Canadian Income Tax purposes.
Record Date |
Payment Date |
Other Income (taxable) |
Capital Gain (50% taxable) |
Total |
||||
| January 31, 2007 | February 20, 2007 | $0.3200 | 100% | $0.0000 | 0% | $0.3200 | 100% | |
| February 28, 2007 | March 20, 2007 | $0.3200 | 100% | $0.0000 | 0% | $0.3200 | 100% | |
| March 30, 2007 | April 20, 2007 | $0.3200 | 100% | $0.0000 | 0% | $0.3200 | 100% | |
| April 30, 2007 | May 22, 2007 | $0.3200 | 100% | $0.0000 | 0% | $0.3200 | 100% | |
| May 31, 2007 | June 20, 2007 | $0.3200 | 100% | $0.0000 | 0% | $0.3200 | 100% | |
| June 29, 2007 | July 20, 2007 | $0.3200 | 100% | $0.0000 | 0% | $0.3200 | 100% | |
| July 31, 2007 | August 20, 2007 | $0.3200 | 100% | $0.0000 | 0% | $0.3200 | 100% | |
| August 31, 2007 | September 20, 2007 | $0.3300 | 100% | $0.0000 | 0% | $0.3300 | 100% | |
| September 28, 2007 | October 22, 2007 | $0.3300 | 100% | $0.0000 | 0% | $0.3300 | 100% | |
| October 31, 2007 | November 20, 2007 | $0.3300 | 100% | $0.0000 | 0% | $0.3300 | 100% | |
| November 30, 2007 | December 20, 2007 | $0.3300 | 100% | $0.0000 | 0% | $0.3300 | 100% | |
| December 31, 2007 | January 21, 2007 | $0.2800 | 84.8484% | $0.0500 | 15.1516% | $0.3300 | 100% | |
| December 31, 2007* | December 31, 2007 | $0.0000 | 0% | $0.0500 | 100% | $0.0500 | 100% | |
| December 31, 2007 | January 21, 2008 | $0.4700 | 100% | $0.0000 | 0% | $0.4700 | 100% | |
| Total | $4.3100 | 97.7324% | $0.1000 | 2.2676% | $4.4100 | 100% | ||
*Special non-cash distribution. See Adjusted Cost Base section below.
Where units are held in a tax deferred plan (e.g. RRSP, RRIF or RESP), no amounts are required to be reported on the unitholder’s income tax return.
Adjusted Cost Base
The 2007 special non-cash distribution of $0.05 per unit was paid in the form of additional units. Immediately after the issuance of the additional units, the outstanding units of the Wajax Income Fund were consolidated such that the number of units outstanding remained unchanged from the number held immediately prior to the distribution.
A unitholder who holds a unit as capital property will add the special non-cash distribution of $0.05 per unit to the adjusted cost base of the unit.
General Tax Information for U.S. Unitholders
Distributions paid by the Fund to the U.S. unitholders are generally subject to Canadian withholding tax of 15%. The portion of the 2007 distribution that is considered to be a dividend for U.S. federal income tax purposes will depend on the Fund’s current and accumulated earnings and profits (”E & P”) as determined in accordance with U.S. income tax principles. Wajax Income Fund is not required and does not intend to compute E & P for US tax purposes. Unitholders should consult their own tax advisors in this regard.
TIN Number – 27488995
This above tax information is of a general nature only and is not intended to be legal or tax advice to any holder of the Fund’s units. Investors should consult their own tax advisors for advice with respect to the tax consequences of an investment in the Fund’s units based on their particular circumstances.