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Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
Maple Leaf Energy Income Tax Guide_sp
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Maple Leaf Energy Income Tax Guide_sp

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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 slipMapleLeafEnergyIncomeprogramsprovideCanadianresidentinvestorswithexclusiveenergysectorinvestmentsthatprovidemonthlyincome,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 providediversificationthroughkeygeographicalareas andmulti-zonewells.4 Capitalappreciationpotential5 Theopportunitytoconvertincomeintomorefavorably taxedcapitalgains.
  • 3. MAPLE LEAF ENERGY INCOMELIMITED PARTNERSHIP 90 91
  • 4. saMple T5013a tax slip Your T5013a YourpersonalT5013ATax Slipwillbesentdirectlyto youfromyourinvestment dealersbackofficeonor beforeMarch31st,2012. Maple leaf energy incoMe4 prograMs ta x ation guiDe
  • 5. getting started yoUr t5013a Thistaxfilingguidehasbeenprovided toassistyouinclaimingyour2011tax 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 rDeDuction anD are covereD in this guiDe: Pleasefoldoutthefrontcoverofthis guideandyouwillfindasampleT5013A.key boxes Thefiguresprovidedinyourpersonal T5013Aneedtobeinsertedinthe applicablesectionsofyourT1TaxReturnbox 22 CanadianandForeignnetbusinessincome(loss) andrelatedschedules.Formsreferred tointhisbooklet(T1GeneralReturn,box 50 InterestfromCanadianSources Schedule3,Schedule4,T1229,T5004)box 90 CanadianExplorationExpenses areavailablefordownloadthroughthe CanadaRevenueAgency(CRA)websitebox 91 CanadianDevelopmentExpenses www.cra-arc.gc.caorourwebsite www.Mapleleaffunds.ca.TheremaybeotherboxesonyourT5013Athatcontaininformationbutdo not have to be enteredonyourtaxreturn.Boxes22-1,150,151,152and153areforCRAinformationonly. noTe: YouwillreceiveaT5013Aforeach limitedpartnershipyouown.Insome cases,youwillneedtosumthe amountsfromyourT5013A’sbefore insertingthemintotheappropriate placeonthetaxschedule.Ifyouare usingasoftwareprogram,each T5013Ashouldbeenteredseparately.
  • 6. reporting investment income please reference insiDe front cover saMple T5013a or your personal ta x forMbox 22TheamountinBox22representsyourshareoftheLimitedPartnershipbusinessincome(loss). t1 - schedule 4, page 1TheBox22amountandtheBox50amountfromyourT5013AarebothrecordedonSchedule4yourT1TaxReturn.step 1:InserttheamountfoundinBox22ofyourT5013AintoPartIII,line122-Netpartnershipincome(loss)ofSchedule4.Carrythatsameamountforwardtopage2,line122ofyourT1.Pleasenotethattheincome(loss)thatisreportedonyourpersonalT1taxreturnmaybedifferentfromtheincome(loss)showninthefinancialstatements,asexplorationanddevelopmentexpensesarededucteddifferentlyfortaxpurposesincomparisontoaccountingpurposes.expensesaredeductedfortaxpurposesandhowtheyaredeductedforaccountingpurposes. noTe: what is incoMe (loss)? Thecashdistributionsarenot includedinyourincome–theyare takenintoaccountwhendetermining theAdjustedCostBase(ACB)ofyour unitsfortaxpurposes. Maple leaf energy incoMe 2 prograMs ta x ation guiDe
  • 7. reporting investment please reference insiDe front cover saMple T5013a or your personal ta x forM income (con’t) box 50 TheamountinBox50representsthe interestincomefromCanadiansources. step 2:Inserttheamountfoundin Box50ofyourT5013AintoPartIII,line 121-Netpartnershipincome(loss)of Schedule4.Carrythesameamountt1, page 2 forwardtopage2,line121ofyourT1. noTe: DiD you borrow or DiD you buy? Ifyouborrowedanyamountsto acquireyourlimitedpartnership units,theamountofinterest expenseyouincurredintheyear couldbeincludedinSectionIV “CarryingChargesInterest Expenses”ofSchedule4. Pleaseconsultyourtaxadvisor astothedeductibilityofsuch interestexpense.Thetotalof thissectionisenteredonline 221ofyourT1TaxReturn. Maple leaf energy incoMe ta x ation guiDe prograMs 3
  • 8. claiming resource expensesbox 90 box 91 (renounceD canaDian resource expenses)TheamountinBox90andBox91ofyourFormT5013ArepresentstheCanadianExplorationExpense(“CEE”)andtheCanadianDevelopmentExpense(“CDE”)renouncedbytheresourcecompaniesandpassedontoyou,theinvestor.PleaseseeNotesforfoundonpage6withrespecttocarryforwardsandmultipleinvestments,ifapplicabletoyou.TheCEEandCDEamountflowstoyourT1incometaxreturnviatheFormT1229,StatementofResourceExpensesandDepletionAllowance.ThefirstthreesectionsoftheT1229areused. t1229t1229 area i - suMMary oft101 anD t5013a expensesstep 1.1 : StartbyenteringthePartnership’sBusinessNumberfromBox2ofyourT5013AintotheIdentificationNumberboxinArea1ofyourT1229.step 1.2 : EntertheRenouncedCanadianExplorationExpense(CEE)fromBox90ofyourT5013AintotheCEERenunciationcolumninArea1ofyourT1229.step 1.3 : EntertheRenouncedCanadianDevelopmentExpense(CDE)fromBox91ofyourT5013AintotheCDERenunciationcolumninArea1ofyourT1229.t1229 area ii - canaDianresource expenDiture poolsstep 2.1 : Enteranybalance(s)atthebeginningoftheyear.step 2.2 : AddTotalYearRenunciationfromArea1.step 2.3 : CalculatesubtotalsandBalanceAvailable(A)asindicated.step 2.4 : CalculateMaximumExplorationandDevelopmentExpensesAvailableforDeduction(4)usingtheappropriateratesasindicated,CCEE-=100%andCCDE-30%. Maple leaf energy incoMe4 prograMs ta x ation guiDe
  • 9. claiming resoUrce please reference insiDe front cover saMple T5013a or your personal ta x forM expenses (con’t) 90 91 90 91t1 - page 3 step 25: CalculateExplorationand . DevelopmentExpensesClaimedinthe Year(B)andBalanceatEndofYear(A-B). t1229 area iii- exploration anD DevelopMent expenses step 31: EntertheTotalExplorationand . DevelopmentExpensesClaimedsum(or claimsinBabove)andentertotalonline 224ofyourreturn. neeD a forM t1229? Thisformmustbeincludedwith yourT1TaxReturnandisavailable fordownloadthroughtheCanada RevenueAgency(CRA)website www.cra-arc.gc.caorourwebsite www.MapleLeafFunds .ca Maple leaf energy incoMe ta x ation guiDe prograMs 5
  • 10. claiming resoUrceexpenses (con’t) please reference insiDe front cover saMple T5013a or your personal ta x forM 90 91box 90 91 continueD...Pleaseseeimportantnotesandstepsregardingcarryforwardsandmultipleinvestments. noTe: carry forwarDs FurtheronclaimingresourceexpensesthecalculationsusedinSectionIIandIIIofyourFormT1229takealittlemore thoughtduetothefactthatCEEandCDEamountsneednotbeusedimmediatelyandtheycanbecarriedforwardand usedinfutureyears.Likewise,thecurrentyear’sreturncouldreflectunusedamountscarriedforwardfromearlier years.TheCCEEcolumnorCCDEcolumnofSectionIImayrequireinvestorstochecktheirreturnsfromtheprevious yeartoseeifthereisunusedCEEorCDEfrompreviousyears.Ifthereisanamountthathasnotbeenclaimed,itmay beenteredonline1–“Balanceatthebeginningoftheyear.”Thecurrentyearrenunciationgoesonthesecondlineof thissection,andflowsdowntothebottomoftheCCEEorCDEEcolumn. noTe: Multiple investMents Ifyouhavemorethanoneresourceinvestment,youwillneedtoincludeall(CEE)or(CDE)amountsallocatedtoyouin theapplicableboxesofthissectionbeforecomputingtheamountyoumayclaiminyourtaxreturn.Themaximum claimiscomputedonline4.EntertheamountyouwishtoclaimonlineB(generally,thiswillbethemaximum amount).Subtracttheamountyouwishtoclaimfromthemaximumamounttocomputetheamount,ifanyandthat willbecarriedforwardto2011.TheamountofCCEEorCDEEalongwithotherresourceexpenditures(acronyms CCOGPE)fromlineBshouldbeaddedtogetherandusedasthefirstlineofSectionIII.ThefinallineofSectionIIIis enteredonline224ofyourT1TaxReturn. Maple leaf energy incoMe6 prograMs ta x ation guiDe
  • 11. tax shelter loss or deductions please reference insiDe front cover saMple T5013a or your personal ta x forM AClaimforTaxShelterLossorDeduction (T5004)mustbecompletedinorderto claimdeductionsrelatedtoyourMaple LeafLimitedPartnership. Theinformationonthisformwillbetaken fromtheT5013AandfromSchedule4of yourT1TaxReturn.t5004 - page 1 step 1: Takethetaxshelteridentification number,whichisasix-digitnumberwitha TSprefixlocatedinbox3atthetopcentre ofyourT5013Aandenteritintocolumn1, line1ofyourT5004. step 2: Enterthetaxsheltername, i.e.whicheverspecificMapleLeafLimited Partnership(s)youhave investedin(e.g. MapleLeaf2011EnergyIncomeLimited Partnership)intocolumn2. step 3: Enterthepurchasedateis thedateofpurchaseofyourMapleLeaf LimitedPartnership(s)intocolumn3. step 4: Entertheamountfoundinbox35 “Businessincomeloss”intocolumn4 “Lossordeductionclaimed”. step 5: Incolumn5,entertheline numberthatthisamountisreportedonin yourT1Taxreturn(generallythisisfound oneitherExplorationandDevelopment Expenses(line224)orNetPartnership Income(line122)ofyourT1TaxReturn). note: Ifyouownmorethanonelimited partnershiportax-shelterinvestment,these amountsmustbeaddedonindividuallines onyourT5004andtotaledinbox6765. Maple leaf energy incoMe ta x ation guiDe prograMs 7
  • 12. other considerations Thisguidehasbeendesignedtoofferyouassistancewhenclaimingyour2010taxdeduction fromyourMapleLeafinvestment.Thereareanumberofadditionalconsiderationsthatmay beapplicabletoyoursituation.Hereareafewexamples:1 the cee or cDe election 4 lternative Minimum tax a Whileaninvestorisallowedtodeduct Alternativeminimumtaxmayapply thefullrenouncedCEEorCDE,itisnot inagiventaxationyear,dependingon required.Aspartofataxplanningstrat- theamountofrenouncedexpenditures egyaninvestormayfinditadvantageous deductedbytheinvestor. tocarryforwardsomeorallofan 5 issue costs availableCCEEorCCDEdeductionand Investorsmaydeductissuecosts usethisamountinsubsequentyears. associatedwithaflow-throughlimited2 umulative net investment c partnershipoveranumberofyears losses (cnil) subsequenttothedissolutionofthe Utilizationoftaxdeductionsthrough partnership.Thesecostscanbe flow-throughsharesmayhaveaneffect deductedonline122ofyourincome onaninvestor’scalculationsofCNIL. taxreturn.3 capital gains exemptions Renouncedexpendituresdeductedby theinvestormayaffecttheabilityofthe taxpayertoclaimthe$750,000capital gainsexemptioninrespectofsalesof qualifiedsmallbusinesssharesand certainfarmorfishingassets,asthe calculationofataxpayer’sCNILrequires aninclusionof50percentofthededuc- tionstakenbythetaxpayerinrespectof flow-throughsharerenouncement’s. noTe: Thisisnotadetailedlistingof everypossibletaxconsideration andisdesignedtobeageneral guideonly.Eachindividual’stax andinvestmentplanningsituation isuniqueandprofessionaladvice shouldalwaysbereceivedfroma qualifiedtaxand/orinvestment specialist. Maple leaf energy incoMe 8 prograMs ta x ation guiDe
  • 13. freQuentlY asKed Questionswhat tax DeDuctions can i expect?MapleLeafEnergyIncomeLimitedPartnershipshavebeenstructuredtoprovideinvestorswithuptoa100%taxdeductionoverapproximately5years.when will i receive My t5013a tax slip?YourT5013Ataxslipwillbemaileddirectlytoyoubyyourinvestmentdealersbackoffice,onorbeforeMarch31stofeachyearduringofthelifeofthePartnership.IfyoudonotreceiveyourT5013AorrequireareprintyourT5013A,pleasecontactyourinvestmentadvisorandtheywillcontacttheirbackofficeonyourbehalf.when can i expect to receive cash Distributions on their investMent?ThePartnershipexpectstopaycashdistributionsfromthesaleofitsshareofoilandgasproducedbydevelopedwellscommencingapproximately9-12monthsfromthedateofthefinalclosingoftheoffering.Thesecashdistributionswillbeautomaticallydepositeddirectlyintoinvestorsaccountviatheirdealer’sbackoffice.when Does a liquiDity event occur anD what will i receive at that tiMe?ThelifecycleofthePartnershipthroughtoliquidityisexpectedtobeapproximately3years.TheGeneralPartnercurrentlyexpectstheliquidityeventwillbethesaleoftheinvestments(directnon-operatedworkinginterests,royalties,orothersimilarentitlements)heldbythePartnershiptoapubliccompanyestablishedbyToscanaCapitalCorporationinexchangeforlistedsharesonatax-deferredbasis.ThePartnershipwouldthendissolveanddistributetheselistedsharestotheformerinvestors.Intheeventofreceivingsharesofapubliclytradedcompany,ataxeventistypicallydeferreduntilthesecuritiesaresold. Maple leaf energy incoMe ta x ation guiDe prograMs 9
  • 14. 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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