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2011 Maple Leaf Energy Income Tax Guide
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2011 Maple Leaf Energy Income Tax Guide

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  • 1. tax filing guide for the 2011 taxation year ENERGY INCOME table of contents G  ettingstarted ReportingInvestmentIncome 2 ClaimingResourceExpenses 4 TaxShelterLossorDeductions 7 OtherConsiderations 8 FrequentlyAskedQuestions 9 ContactUs 10
  • 2. flip open cover to view saMple T5013a tax slip MAPLE LEAF ENERGY INCOME LIMITED PARTNERSHIPMapleLeafEnergyIncomeprogramsprovideCanadianresidentinvestorswithexclusiveenergysectorinvestmentsthatprovidemonthlyincome,uptoa100%taxdeduction,liquidityandtheopportunitytoconvertincomeintocapitalgains.MapleLeaf’sseasonedmanagementteamachievestheseobjectivesthroughdirect‘non-operated’workinginterests,royaltiesorothersimilarentitlements.Top 5 Reasons Maple leafenergy incoMe May be rightfor you:1  onthlyincome(12%annualizedtarget). M2  pto100%taxdeduction. U3  ccesstoexclusiveenergysectorinvestmentsthat A 90 91 providediversificationthroughkeygeographicalareas andmulti-zonewells.4 Capitalappreciationpotential5 Theopportunitytoconvertincomeintomorefavorably taxedcapitalgains.
  • 3. getting started saMple T5013a yoUr t5013a Thistaxfilingguidehasbeenprovided toassistyouinclaimingyour2011tax tax slip Yourpersonal T5013A –‘StatementofPartnershipIncomeforTaxShelters deductionsfromyourMapleLeafEnergy andRenouncedResourceExpenses’willbesentdirectlytoyoufromyour IncomeLimitedPartnershipinvestment investmentdealers,backofficeonorbeforeMarch31st,2012.Thesame (“MapleLeaf”orthe“Partnership.”) procedureisfollowedineachsubsequentyear. Thisguideshouldnotbeconsideredastax advice.MapleLeafstronglyrecommends youconsultwithyourprofessionaltaxand/ orinvestmentadvisortodeterminethe appropriateuseoftaxdeductionsand othertaxconsiderations. k e y b o x e s o n y o u r T 5 0 13 a t h at a r e u s e D t o c a l c u l at e y o u r DeDuction anD are covereD in this guiDe: Pleasefoldoutthefrontcoverofthis guideandyouwillfindasampleT5013A. key boxes Thefiguresprovidedinyourpersonal T5013Aneedtobeinsertedinthe applicablesectionsofyourT1TaxReturn box 22 CanadianandForeignnetbusinessincome(loss) andrelatedschedules.Formsreferred tointhisbooklet(T1GeneralReturn, box 50 InterestfromCanadianSources Schedule3,Schedule4,T1229,T5004) box 90 CanadianExplorationExpenses areavailablefordownloadthroughthe CanadaRevenueAgency(CRA)website box 91 CanadianDevelopmentExpenses www.cra-arc.gc.caorourwebsite www.Mapleleaffunds.ca. TheremaybeotherboxesonyourT5013Athatcontaininformation butdo not have to be enteredonyourtaxreturn.Boxes22-1,150, 151,152and153areforCRAinformationonly. Your T5013a noTe: YourpersonalT5013ATax YouwillreceiveaT5013Aforeach Slipwillbesentdirectlyto limitedpartnershipyouown.Insome cases,youwillneedtosumthe youfromyourinvestment amountsfromyourT5013A’sbefore dealersbackofficeonor insertingthemintotheappropriate beforeMarch31st,2012. placeonthetaxschedule.Ifyouare usingasoftwareprogram,each T5013Ashouldbeenteredseparately. Maple leaf energy incoMe4 prograMs ta x ation guiDe
  • 4. reporting investment income reporting investment please reference insiDe front cover saMple T5013a or your personal ta x forM please reference insiDe front cover saMple T5013a or your personal ta x forM income (con’t)box 22 box 50TheamountinBox22representsyour TheamountinBox50representstheshareoftheLimitedPartnershipbusiness interestincomefromCanadiansources.income(loss). step 2:Inserttheamountfoundin Box50ofyourT5013AintoPartIII,line 121-Netpartnershipincome(loss)of Schedule4.Carrythesameamount t1 - schedule 4, page 1 t1, page 2 forwardtopage2,line121ofyourT1.TheBox22amountandtheBox50amountfromyourT5013AarebothrecordedonSchedule4yourT1TaxReturn.step 1:InserttheamountfoundinBox22ofyourT5013AintoPartIII,line122-Netpartnershipincome(loss)ofSchedule4.Carrythatsameamountforwardtopage2,line122ofyourT1.Pleasenotethattheincome(loss)thatis noTe: DiD you borrowreportedonyourpersonalT1taxreturn or DiD you buy?maybedifferentfromtheincome(loss) Ifyouborrowedanyamountstoshowninthefinancialstatements,asexplorationanddevelopmentexpenses acquireyourlimitedpartnershiparededucteddifferentlyfortaxpurposes units,theamountofinterestincomparisontoaccountingpurposes. expenseyouincurredintheyearexpensesaredeductedfortaxpurposes couldbeincludedinSectionIVandhowtheyaredeductedforaccounting “CarryingCharges&Interestpurposes. Expenses”ofSchedule4. noTe: what is incoMe (loss)? Pleaseconsultyourtaxadvisor Thecashdistributionsarenot astothedeductibilityofsuch includedinyourincome–theyare interestexpense.Thetotalof takenintoaccountwhendetermining thissectionisenteredonline theAdjustedCostBase(ACB)ofyour 221ofyourT1TaxReturn. unitsfortaxpurposes. Maple leaf Maple leaf energy incoMe energy incoMe 2 prograMs ta x ation guiDe ta x ation guiDe prograMs 3
  • 5. claiming resource expenses claiming resoUrce please reference insiDe front cover saMple T5013a or your personal ta x forM expenses (con’t) 90 91box 90 & box 91 (renounceD canaDian resource expenses)TheamountinBox90andBox91ofyourFormT5013ArepresentstheCanadianExplorationExpense(“CEE”)andtheCanadianDevelopmentExpense(“CDE”)renouncedbytheresourcecompaniesandpassedontoyou,theinvestor.PleaseseeNotesforfoundonpage6withrespecttocarryforwardsandmultipleinvestments,ifapplicabletoyou. 90 91TheCEEandCDEamountflowstoyourT1incometaxreturnviatheFormT1229,StatementofResourceExpensesandDepletionAllowance.ThefirstthreesectionsoftheT1229areused. t1229 t1 - page 3t1229 area i - suMMary of step 25: CalculateExplorationand .t101 anD t5013a expenses DevelopmentExpensesClaimedinthe Year(B)andBalanceatEndofYear(A-B).step 1.1 : StartbyenteringthePartnership’sBusinessNumberfromBox2ofyourT5013AintotheIdentification t1229 area iii- explorationNumberboxinArea1ofyourT1229. anD DevelopMent expensesstep 1.2 : EntertheRenouncedCanadian step 31: EntertheTotalExplorationand .ExplorationExpense(CEE)fromBox90of DevelopmentExpensesClaimedsum(oryourT5013AintotheCEERenunciation claimsinBabove)andentertotalonlinecolumninArea1ofyourT1229. 224ofyourreturn.step 1.3 : EntertheRenouncedCanadianDevelopmentExpense(CDE)fromBox91ofyourT5013AintotheCDERenunciationcolumninArea1ofyourT1229.t1229 area ii - canaDianresource expenDiture poolsstep 2.1 : Enteranybalance(s)atthe neeD a forM t1229?beginningoftheyear. Thisformmustbeincludedwithstep 2.2 : AddTotalYearRenunciation yourT1TaxReturnandisavailablefromArea1. fordownloadthroughtheCanadastep 2.3 : Calculatesubtotalsand RevenueAgency(CRA)websiteBalanceAvailable(A)asindicated. www.cra-arc.gc.caorourwebsite www.MapleLeafFunds .castep 2.4 : CalculateMaximumExplorationandDevelopmentExpensesAvailableforDeduction(4)usingtheappropriateratesasindicated,CCEE-=100%andCCDE-30%. Maple leaf Maple leaf energy incoMe energy incoMe4 prograMs ta x ation guiDe ta x ation guiDe prograMs 5
  • 6. claiming resoUrce tax shelter loss or deductionsexpenses (con’t) please reference insiDe front cover saMple T5013a or your personal ta x forM please reference insiDe front cover saMple T5013a or your personal ta x forM 90 91box 90 & 91 continueD... AClaimforTaxShelterLossorDeduction (T5004)mustbecompletedinordertoPleaseseeimportantnotesandsteps claimdeductionsrelatedtoyourMapleregardingcarryforwardsandmultiple LeafLimitedPartnership.investments. Theinformationonthisformwillbetaken fromtheT5013AandfromSchedule4of yourT1TaxReturn. t5004 - page 1 step 1: Takethetaxshelteridentification number,whichisasix-digitnumberwitha noTe: carry forwarDs TSprefixlocatedinbox3atthetopcentre ofyourT5013Aandenteritintocolumn1, FurtheronclaimingresourceexpensesthecalculationsusedinSectionIIandIIIofyourFormT1229takealittlemore line1ofyourT5004. thoughtduetothefactthatCEEandCDEamountsneednotbeusedimmediatelyandtheycanbecarriedforwardand step 2: Enterthetaxsheltername, usedinfutureyears.Likewise,thecurrentyear’sreturncouldreflectunusedamountscarriedforwardfromearlier i.e.whicheverspecificMapleLeafLimited years.TheCCEEcolumnorCCDEcolumnofSectionIImayrequireinvestorstochecktheirreturnsfromtheprevious Partnership(s)youhave investedin(e.g. yeartoseeifthereisunusedCEEorCDEfrompreviousyears.Ifthereisanamountthathasnotbeenclaimed,itmay MapleLeaf2011EnergyIncomeLimited beenteredonline1–“Balanceatthebeginningoftheyear.”Thecurrentyearrenunciationgoesonthesecondlineof Partnership)intocolumn2. thissection,andflowsdowntothebottomoftheCCEEorCDEEcolumn. step 3: Enterthepurchasedateis thedateofpurchaseofyourMapleLeaf LimitedPartnership(s)intocolumn3. step 4: Entertheamountfoundinbox35 “Businessincomeloss”intocolumn4 “Lossordeductionclaimed”. step 5: Incolumn5,entertheline noTe: Multiple investMents numberthatthisamountisreportedonin Ifyouhavemorethanoneresourceinvestment,youwillneedtoincludeall(CEE)or(CDE)amountsallocatedtoyouin yourT1Taxreturn(generallythisisfound oneitherExplorationandDevelopment theapplicableboxesofthissectionbeforecomputingtheamountyoumayclaiminyourtaxreturn.Themaximum Expenses(line224)orNetPartnership claimiscomputedonline4.EntertheamountyouwishtoclaimonlineB(generally,thiswillbethemaximum Income(line122)ofyourT1TaxReturn). amount).Subtracttheamountyouwishtoclaimfromthemaximumamounttocomputetheamount,ifanyandthat willbecarriedforwardto2011.TheamountofCCEEorCDEEalongwithotherresourceexpenditures(acronyms CCOGPE)fromlineBshouldbeaddedtogetherandusedasthefirstlineofSectionIII.ThefinallineofSectionIIIis note: Ifyouownmorethanonelimited partnershiportax-shelterinvestment,these enteredonline224ofyourT1TaxReturn. amountsmustbeaddedonindividuallines onyourT5004andtotaledinbox6765. Maple leaf Maple leaf energy incoMe energy incoMe6 prograMs ta x ation guiDe ta x ation guiDe prograMs 7
  • 7. other considerations freQuentlY asKed Questions Thisguidehasbeendesignedtoofferyouassistancewhenclaimingyour2010taxdeduction fromyourMapleLeafinvestment.Thereareanumberofadditionalconsiderationsthatmay beapplicabletoyoursituation.Hereareafewexamples:1  the cee or cDe election  4   lternative Minimum tax a what tax DeDuctions can i expect? Whileaninvestorisallowedtodeduct Alternativeminimumtaxmayapply MapleLeafEnergyIncomeLimitedPartnershipshavebeenstructuredtoprovideinvestorswithuptoa100%taxdeductionoverapproximately5 thefullrenouncedCEEorCDE,itisnot inagiventaxationyear,dependingon years. required.Aspartofataxplanningstrat- theamountofrenouncedexpenditures egyaninvestormayfinditadvantageous deductedbytheinvestor. tocarryforwardsomeorallofan when will i receive My t5013a tax slip? 5  issue costs availableCCEEorCCDEdeductionand YourT5013Ataxslipwillbemaileddirectlytoyoubyyourinvestmentdealersbackoffice,onorbeforeMarch31stofeachyearduringofthelifeof Investorsmaydeductissuecosts usethisamountinsubsequentyears. thePartnership.IfyoudonotreceiveyourT5013AorrequireareprintyourT5013A,pleasecontactyourinvestmentadvisorandtheywillcontact associatedwithaflow-throughlimited theirbackofficeonyourbehalf.2   umulative net investment c partnershipoveranumberofyears losses (cnil) subsequenttothedissolutionofthe Utilizationoftaxdeductionsthrough partnership.Thesecostscanbe when can i expect to receive cash Distributions on their investMent? flow-throughsharesmayhaveaneffect deductedonline122ofyourincome ThePartnershipexpectstopaycashdistributionsfromthesaleofitsshareofoilandgasproducedbydevelopedwellscommencingapproximately onaninvestor’scalculationsofCNIL. taxreturn. 9-12monthsfromthedateofthefinalclosingoftheoffering.Thesecashdistributionswillbeautomaticallydepositeddirectlyintoinvestorsaccount3  capital gains exemptions viatheirdealer’sbackoffice. Renouncedexpendituresdeductedby theinvestormayaffecttheabilityofthe taxpayertoclaimthe$750,000capital when Does a liquiDity event occur anD what will i receive at that tiMe? gainsexemptioninrespectofsalesof qualifiedsmallbusinesssharesand ThelifecycleofthePartnershipthroughtoliquidityisexpectedtobeapproximately3years.TheGeneralPartnercurrentlyexpectstheliquidity certainfarmorfishingassets,asthe eventwillbethesaleoftheinvestments(directnon-operatedworkinginterests,royalties,orothersimilarentitlements)heldbythePartnershiptoa calculationofataxpayer’sCNILrequires publiccompanyestablishedbyToscanaCapitalCorporationinexchangeforlistedsharesonatax-deferredbasis.ThePartnershipwouldthen aninclusionof50percentofthededuc- dissolveanddistributetheselistedsharestotheformerinvestors.Intheeventofreceivingsharesofapubliclytradedcompany,ataxeventis tionstakenbythetaxpayerinrespectof typicallydeferreduntilthesecuritiesaresold. flow-throughsharerenouncement’s. noTe: Thisisnotadetailedlistingof everypossibletaxconsideration andisdesignedtobeageneral guideonly.Eachindividual’stax andinvestmentplanningsituation isuniqueandprofessionaladvice shouldalwaysbereceivedfroma qualifiedtaxand/orinvestment specialist. Maple leaf Maple leaf energy incoMe energy incoMe 8 prograMs ta x ation guiDe ta x ation guiDe prograMs 9
  • 8. contact us corporate office corporate office caDo bancorp ltd. toscana energy corp. POBox10357,Suite808 2550,700-2ndStreet,S.W. 609GranvilleStreet, Calgary,ABT2P2W2 Vancouver,BCV7Y1G5 Tel  403.410.6792 Tel  604.684.5742 Fax 403.444.0900 Fax 604.684.5748 Email info@cadobancorp.ca transfer agent legal counsel auDitors valiant trust company borden ladner gervais, llp pricewaterhousecoopers 600-750CambieStreet, P.O.Box48600,1200-200 250HoweStreet,Suite700 Vancouver,BCV6B0A2 BurrardStreet,Vancouver,BC Vancouver,BCV6C3S7 V7X1T2 Tel  604.699.4880 Tel  604.806.7000 Fax 604.681.3067 Tel  604.687.5744 Fax 604.806.7806 www.valianttrust.com Fax 604.687.1415 www.blgcanada.com if you neeD help Thisguideandotherrelevantinformation with the following... canbefoundonthetaxreporting2011 pageonourwebsite: •  t’sMarch31standyoustill I haven’treceivedyourtaxslip www.MapleLeafFunds.ca orifyouneedare-print •  ouneedtochangeyour Y accountaddressfordelivery ofyourtaxslip ... please contact your advisor and they will contact their administrative back office. if you neeD help with the following... •  ouneedhelpfillingout Y yourforms •  ourequiredetailedor Y advancedtaxadvice ... please contact your professional tax advisor. Maple leaf energy incoMe10 prograMs ta x ation guiDe