Great Lakes Hydro Income Fund Releases 2006 Income Tax Information
The following information is not intended as legal or tax advice for any particular unitholder, and therefore both Canadian and U.S. unitholders of the Fund should consult their own legal and/or tax advisors regarding their individual tax circumstances.
2006 Canadian Unitholder Tax Information
A summary of cash distributions declared by the Fund, beginning with the January distribution paid on February 28, 2006 up to and including the December distribution paid on January 31, 2007, is given below. Distributions for this period totaled $1.24 per unit.
| Distribution Detail for Great Lakes Hydro Income Fund | |||||
|---|---|---|---|---|---|
| Taxable Portion | |||||
| Record Date | Payment Date | Distribution Amount/Unit |
Return of Capital |
Amount of Eligible Dividends |
Other Income |
| 01/31/2006 | 02/28/2006 | $ 0.10330 |
$0.03247 |
$ 0.02468 |
$ 0.04615 |
| 02/28/2006 | 03/31/2006 | $ 0.10330 |
$0.03247 |
$ 0.02468 |
$ 0.04615 |
| 03/31/2006 | 04/28/2006 | $ 0.10330 |
$0.03247 |
$ 0.02468 |
$ 0.04615 |
| 04/28/2006 | 05/31/2006 | $ 0.10330 |
$0.03247 |
$ 0.02468 |
$ 0.04615 |
| 05/31/2006 | 06/30/2006 | $ 0.10330 |
$0.03247 |
$ 0.02468 |
$ 0.04615 |
| 06/30/2006 | 07/31/2006 | $ 0.10330 |
$0.03247 |
$ 0.02468 |
$ 0.04615 |
| 07/31/2006 | 08/31/2006 | $ 0.10330 |
$0.03247 |
$ 0.02468 |
$ 0.04615 |
| 08/31/2006 | 09/29/2006 | $ 0.10417 |
$0.03274 |
$ 0.02489 |
$ 0.04654 |
| 09/30/2006 | 10/31/2006 | $ 0.10417 |
$0.03274 |
$ 0.02489 |
$ 0.04654 |
| 10/31/2006 | 11/30/2006 | $ 0.10417 |
$0.03274 |
$ 0.02489 |
$ 0.04654 |
| 11/30/2006 | 12/29/2006 | $ 0.10417 |
$0.03274 |
$ 0.02489 |
$ 0.04654 |
| 12/31/2006 | 01/31/2007 | $ 0.10417 |
$0.03274 |
$ 0.02489 |
$ 0.04654 |
The Fund has determined that of the monthly distributions paid to Canadian unitholders in 2006, 31.43 percent should be reported as a non-taxable return of capital, 23.89 percent as an eligible dividend and 44.68 percent should be reported as the taxable portion.
Canadian unitholders holding their Great Lakes Hydro Income Fund in a Registered Retirement Savings Plan, Registered Retirement Income Fund or Deferred Profit Savings Plan should not report any income related to distributions on their 2006 income tax return. Unitholders holding their units outside such plans will receive a T3 Supplementary Information slip from their broker or intermediary, postmarked on or before March 31, 2007.
2006 U.S. Unitholder Tax Information
The Fund believes that for U.S. federal income tax purposes the units of the Fund will more likely than not be properly classified as equity in a corporation, rather than as debt, and that dividends paid to its individual U.S. unitholders should therefore be treated as qualified dividends. As such, the distributions made during 2006, considered dividends, should qualify for the reduced rate of tax applicable to certain capital gains.
With respect to cash distributions paid in 2006 to U.S. individual unitholders, 27.27 percent should be reported as a non-taxable return of capital and 72.73 percent should be reported as qualified dividends.
The Fund is not required to issue Form 1099-DIV’s; however, U.S. unitholders may have already received this Form from a broker or intermediary that may not be correct. Consequently, U.S. unitholders should consult their brokers and tax advisors to ensure that this information is correctly reflected on their tax returns. Brokers and intermediaries may or may not be required to issue amended Form 1099-DIV’s.
FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements concerning the Great Lakes Hydro Income Fund (“Fund”) business and operations. Forward looking statements can be identified by the use of words, such as “believe”, “well positioned”, “long-term”, “grow”, “expand”, “enhance” or variations of such words and phrases or state that certain actions, events or results “will” be taken, occur or be achieved. Forward looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results or performance expressed or implied by the forward statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied in the forward-looking statements contained herein, and as a such, you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements represent our views as of the date of this news release. While the Fund anticipates that subsequent events and developments may cause the Fund’s views to change, the Fund disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Fund’s views as of any date subsequent to the date of this news release.
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro (www.greatlakeshydro.com) is a premier Canadian income fund. We are the largest power income fund in North America with 1,015 megawatts of power generating capacity and an average annual production of 3,874 gigawatt hours.
Great Lakes Hydro Income Fund produces electricity exclusively from environmentally friendly hydroelectric resources. The Fund owns, operates and manages 26 high quality hydroelectric generating stations located on eight river systems in four distinct geographic regions across North America: Quebec, Ontario, British Columbia and New England.
Brookfield Power, which comprises all the power operations of Brookfield Asset Management, owns 50.1% of the Fund’s outstanding units.
Great Lakes Hydro Income Fund units are listed for trading on the Toronto Stock Exchange under the symbol GLH.UN.
For further information:
Grace Pollock
Director, Corporate Communications and Investor Relations
819-561-8072, unitholderenquiries@greatlakeshydro.com