Please note all taxation information is available from your broker or other intermediary.
2012 Taxation Year
Dividends paid in Canada by us during the 2012 calendar year are 100 percent taxable as eligible dividends. Canadian beneficial shareholders who receive dividends outside of an RRSP, RRIF, DPSP or TFSA should receive a T5 Supplementary slip from their brokerage or intermediary. Canadian registered shareholders will receive a T5 Supplementary slip from Olympia Trust Company.
Historical tax information for Pengrowth shareholders can be found here.
Historical tax information for former NAL shareholders can be found here.
If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.
2012 Taxation Year
Pengrowth understands that each payment in 2012 will be a qualified dividend. The tax information will come in the form of 1099-DIVs which will be sent by the brokerage, bank or other intermediary where the shares are held. Olympia will send the 1099-DIV forms to all U.S. resident registered shareholders.
Dividends paid to non-Canadian resident shareholders are subject to a withholding tax. There is a reciprocal tax treaty between Canada and the United States that allows a reduced rate of 15% to be deducted from the monthly dividend paid to U.S. shareholders who hold shares in regular, taxable accounts.
Pengrowth believes traditional IRAs are Canadian withholding tax exempt. However, since different forms of IRAs exist, the CRA has stated that where the IRAs are operated exclusively to administer or provide pension, retirement or employee benefits, Article XXI(2) can be used to exempt the IRA from Canadian taxation. However, where the IRA does not exclusively provide retirement benefits, such as IRAs used as to fund medical costs (i.e. MSAs), and education (i.e. Coverdell ESAs) the current position of the CRA is that Article XXI(2) cannot be used to exempt the IRA from Canadian taxation.
Pengrowth is required to have all non-resident shareholders complete "Form NR301" - "Declaration of eligibility for benefits under a Tax Treaty for Non-Resident Tax Payer". U.S. Citizens should have received notice regarding this form. Copies of the notice and the form are available here.
U.S. Taxation, Regulation 1.6045B.1
For information pertaining to IRS Form 8937 – Report of Organizational Actions Affecting Basis of Securities, please click here. (post IRS CAB letters and PGF/NAL Combination Letter)
This information is of a general nature and not exhaustive of all possible income tax considerations. As a general guideline it is not intended to be legal or tax advice to any particular holder or potential holder of trust units, exchangeable shares or shares. Holders or potential holders of shares should consult their own legal and tax advisors as to the specific tax consequences applicable to their particular circumstances.