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Maple Leaf Energy Income Tax Guide_sp

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Maple Leaf Energy Income Tax Guide_sp

  1. 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. 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. 3. MAPLE LEAF ENERGY INCOMELIMITED PARTNERSHIP 90 91
  4. 4. saMple T5013a tax slip Your T5013a YourpersonalT5013ATax Slipwillbesentdirectlyto youfromyourinvestment dealersbackofficeonor beforeMarch31st,2012. Maple leaf energy incoMe4 prograMs ta x ation guiDe
  5. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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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