| CANADA DOMINION RESOURCES GROUP : http://www.canadadominion.com/ : QwikReport |
| Frequently Asked Questions |
| Q | What is CEE? |
| A | The Canadian Exploration Expense (CEE) is a benefit given to resource companies for certain expenses incurred in Canada while discovering the country's potential for supplying limited natural resources. CEE can include expenses for the purpose of developing petroleum or natural gas deposits in Canada, and drilling expenses. |
| Q | When will I receive my T5013A (Revelé 15 in Quebec) tax forms? Will I receive a copy in the mail? |
| A | Each year, Canada Dominion compiles the information necessary for producing the T5013A receipts and forwards this information to your broker's back office in order to prepare the receipts for mailing to investors by no later than March 31st each year. In turn, your broker's back office prepares the copies for mailing which should be sent to you shortly thereafter. If you haven't received a copy of your T-5013A or believe you may be missing some information, you should contact your broker to request a copy. To assist investors with the filing process, we have produced a tax guide that we update each and every year which contains useful tips on how to report the deductions and credits on your return. If you did not receive a copy in the mail, you can visit the "Investor Info/Tax Info" section of our web site to see the corresponding tax factors. These factors should be used as a guide only as they do not represent a tax slip and should not be submitted with your return. NOTE: If you hold a Canada Dominion issue that rolled into Dynamic Managed Portfolios Ltd. (DMP Resource Class) during the tax year that you are reporting on, you will need a copy of our rollover tax guide in order to be able to deduct the "unamortized issuance costs" of that issue. |
| Q | When do I claim my tax deductions or credits? |
| A | Once the books for the deal have closed, the partnership invests in the common shares of mining and oil & gas exploration companies across Canada. In turn, these companies have until the end of the following year to spend the moneys raised on qualifying exploration expenses which are "flowed-through" to the Canada Dominion partnership. Canada Dominion in turn, "flows through" these deductions and credits over to its investors which are reported on a T-5013A/R15 form. The deductions afforded through a flow-through share are very generous, so as an offset, the adjusted cost base on shares purchased are reduced to zero. |
| Q | When and how do I report my capital gains? |
| A | Since the flow-through shares purchased by Canada Dominion are deemed to have an adjusted cost base of zero, any shares sold by the manager will be treated as capital gains in the hands of unit holders. SHARES SOLD IN THE PARTNERSHIP: Should the manager sell securities with a low ACB while inside of the partnership during the holding period, capital gains will be reported on the T-5013A slip which is produced by brokers and mailed to unitholders (i.e., limited partners) in March of the following year. Should a Canada Dominion partnership realize any capital gains during its life, the amount will be included in the calculation of a limited partner's adjusted cost base (ACB) whereby the ACB on the roll over fund will be adjusted upwards by a corresponding amount, taking into account any dividends, interest, business losses or unamortized issuance costs from the partnership. SHARES SOLD IN THE FUND: After the holding period expires, the proceeds of the partnership are generally rolled into the DMP Resource Class, part of Dynamic Managed Portfolios Ltd. Holders of the fund will be assigned an ACB shortly after the transfer of the assets. Should an investor sell their positions in the fund, or use them as a contribution to their RRSP, this would constitute a deemed disposition, where the investor would need to report the capital gains resulting from the transaction in the year of the sale. Note: Canada Dominion issues I through X would have rolled into the Canada Dominion Resources Fund Ltd., which was merged with the CMP Fund Corporation on December 30, 2004 and renamed DMP Resource Class, a resource-focused mutual fund class available inside Dynamic Managed Portfolios Ltd. |
| Q | Where do I claim deductions and credits on my tax return? |
| A | To help you in preparing your income tax returns, Canada Dominion has prepared a comprehensive tax guide to help take you through the process of claiming your deductions and credits (where applicable). This guide is updated each and every year and is specific to the Canada Dominion issue you've purchased. You can download a copy from the "Investor Info/Tax Info" section of the web site. |
| Copyright © 2010 by Canada Dominion Resources Group All rights reserved worldwide. |