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2011 Maple Leaf Energy Income Tax Guide
2011 Maple Leaf Energy Income Tax Guide
2011 Maple Leaf Energy Income Tax Guide
2011 Maple Leaf Energy Income Tax Guide
2011 Maple Leaf Energy Income Tax Guide
2011 Maple Leaf Energy Income Tax Guide
2011 Maple Leaf Energy Income Tax Guide
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 “CarryingChargesInterestpurposes. 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

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