Great Lakes Hydro Income Fund Releases 2007 Income Tax Information
The following information is not intended as legal or tax advice for any particular unitholder. Canadian and U.S. unitholders of the Fund are advised to consult their own legal and/or tax advisors regarding their individual tax circumstances.
A summary of cash distributions declared by the Fund, beginning with the January distribution paid on February 28, 2007 up to and including the December distribution paid on January 31, 2008, is given below. Distributions for this period totaled $1.25004 per unit.
| Distribution Detail for Great Lakes Hydro Income Fund | ||||
|---|---|---|---|---|
| Taxable Portion | ||||
| Record Date | Payment Date | Distribution Amount/Unit |
Return of Capital |
Other Income |
January 31, 2007 |
February 28, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
February 28, 2007 |
March 30, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
March 31, 2007 |
April 30, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
April 30, 2007 |
May 31, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
May 31, 2007 |
June 29, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
June 30, 2007 |
July 31, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
July 31, 2007 |
August 31, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
August 31, 2007 |
September 28, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
September 30, 2007 |
October 31, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
October 31, 2007 |
November 30, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
November 30, 2007 |
December 31, 2007 |
$0.10417 |
$0.05757 |
$0.04660 |
December 31, 2007 |
January 31, 2008 |
$0.10417 |
$0.05757 |
$0.04660 |
2007 Canadian Unitholder Tax Information
The Fund has determined that of the monthly distributions paid to Canadian unitholders in 2007, 55.27 percent should be reported as a non-taxable return of capital and 44.73 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 2007 income tax return. Unitholders holding their units outside such plans should receive a T3 Supplementary Information slip from their broker or intermediary, postmarked on or before March 31, 2008.
2007 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 2007, considered dividends, should qualify for the reduced rate of tax applicable to certain capital gains.
With respect to cash distributions paid in 2007 to U.S. individual unitholders, 55.27 percent should be reported as a non-taxable return of capital and 44.73 percent should be reported as qualified dividends.
The Fund is not required to issue Form 1099-DIV’s. U.S. unitholders may have already received this Form from a broker or intermediary with incorrect information. 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.
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 average annual production of 3,875 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.
Contact Information
Zev Korman
Director, Investor Relations
Tel: (416) 359-1955
e-mail: zkorman@brookfield.com