Taxation of Unitholders
Tax Deferal
Dundee REIT pays a monthly distribution to its unitholders of which only a portion is taxable. The non-taxable portion of any net realized capital gains and any other amount in excess of the net income of Dundee REIT payable to the unitholder will not generally be included in the unitholder’s income for the year.
The Trust has determined that the
distributions
should be treated in the following manner:
| Other taxable income: |
18.3% |
7.3% |
88.2% |
36.7% |
28.9% |
32.1% |
| Taxable Capital Gains: |
4.3% |
0.1% |
1.8% |
5.1% |
1.8% |
2.1% |
| Return of Capital: |
77.4% |
92.6% |
10.0% |
58.2% |
69.3% |
65.8% |
The link below shows record dates with distributions paid and the taxable income that should be allocated:
In 2010, it is anticipated that approximately 65% of the distributions will be tax deferred, with the remaining 35% being taxed as income.
Non-Resident Withholding Tax
Registered non-resident unitholders are subject to withholding tax on 100% of the distribution at the following rates:
| US |
15% |
| German |
18.5% |
| Other |
18.5% |
Therefore, for a registered non-resident holding 100 units, the monthly tax withheld on a per unit distribution of $0.183 will be calculated as follows:
| US |
15% |
$18.30 |
$2.75 |
$15.55 |
| German |
18.5% |
$18.30 |
$3.39 |
$14.91 |
| Other |
18.5% |
$18.30 |
$3.39 |
$14.91 |
Non-registered unitholders who hold their units through a financial institution, may be subject to a higher withholding tax deduction. However, they are eligible to receive a refund once the breakdown of the distribution payment is known.
In addition, for non-residents participating in the distribution reinvestment plan, non-resident witholding tax is deducted from the non-residents' distributions prior to determining the reinvestment amount and the 4% bonus.
Income Tax Considerations
Fair Market Value of Dundee REIT units as at June 30th, 2003
Investors who became unitholders of Dundee REIT by exchanging their Dundee Realty
Corporation shares for units of Dundee REIT should be aware of the Fair
Market
Value as at June 30th, 2003.
Distributions
A holder of Dundee REIT Units is generally required to include the taxable income received from the REIT in his or her income tax return. The taxable portion of the distribution has to be included even if the distribution is reinvested under the Distribution Reinvestment and Unit Purchase Plan.
Canadian unitholders will receive a Statement of Trust Income Allocations and Designations (T3) for income tax purposes. You should receive a statement either from your financial institution or stockbroker if you hold your units in an account or directly from Dundee REIT’s transfer agent, Computershare Trust Company of Canada, if you are a registered unitholder and are in possession of a unit certificate.
Non-resident unitholders should receive a Statement of Amounts Paid or Credited to Non-Residents of Canada (NR4) with the taxable income reported in box 16 and the non-resident tax withheld shown in box 17.
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