CALGARY, ALBERTA -- (Marketwire) -- 03/05/13 -- Inter Pipeline Fund ("Inter Pipeline") (TSX: IPL.UN) announced today the following tax information in relation to cash distributions declared to unitholders in 2012.
Tax Information
During the year, Inter Pipeline declared cash distributions totalling $1.0550 per unit. The 2012 taxable portion amounts to $0.72777 per unit or 68.98% of total cash distributions. The return of capital component in 2012 was $0.32723 per unit or 31.02%.
Unitholders holding Class A units within a tax-free savings account, registered retirement savings plan, registered retirement income fund, deferred profit sharing plan, registered education savings plan or other similar type of deferral plan should not report any income related to cash distributions on their 2012 income tax return. Unitholders holding Class A units outside a deferred plan are taxable on their share of Inter Pipeline's income for tax purposes.
Unitholders should be aware that their participation in Inter Pipeline's Premium Distribution™ and Distribution Reinvestment Plan does not relieve them of any liability for Federal and Provincial income taxes in Canada arising from these distributions, whether re-invested or received as cash.
Here is a breakdown of Inter Pipeline's 2012 distributions:
-------------------------------------------------------------------------------------------------------------------------------------------------------- Percent of Total Cash Distributions Declared $per Class A unit--------------------------------------------------------------------------------------------------------------------------------------------------------Eligible Dividends 59.43981% $0.62709----------------------------------------------------------------------------Foreign Interest Income 13.37062 0.14106----------------------------------------------------------------------------Gross Capital Gain 0.06919 0.00073----------------------------------------------------------------------------Carrying Charges (3.89668) (0.04111)-------------------------------------------------------------------------------------------------------------------------------------------------------- Total taxable portion 68.98294% $0.72777----------------------------------------------------------------------------Return of Capital 31.01706 0.32723-------------------------------------------------------------------------------------------------------------------------------------------------------- Total distributions declared 100.00000% $1.05500----------------------------------------------------------------------------
Although the December 31, 2012 distribution of $0.0925 per unit was paid on January 15, 2013, the taxable portion of this distribution is included in the unitholders' taxable income for 2012.
