2011 Tax Year

Pengrowth reports that dividends paid in Canada during the 2011 calendar year were 100 percent taxable as eligible dividends. The Cdn $0.07 per share payment made on January 17, 2011 to holders of record on December 31, 2010 was the final distribution paid by Pengrowth Energy Trust. This payment was included on the 2010 T3 in Box (26), “Other income”, therefore the 2011 taxation year will only include 11 months from February through to December, 2011.

Canadian beneficial shareholders who received dividends outside of an RRSP, RRIF or DPSP should receive a T5 Supplementary slip from their brokerage or intermediary.  Canadian registered shareholders will receive a T5 Supplementary slip from Computershare Trust Company of Canada. The deadline for issuance of T5 Supplementary slips is February 29, 2012.  Please refer questions regarding the T5 slips directly to your brokerage or Computershare. dd 

 Eligible Dividends for Canadian Tax Purposes

Pengrowth Energy Corporation hereby advises all shareholders that, effective from January 1, 2011, all dividends paid on its common shares will be designated as “eligible dividends” for Canadian income tax purposes. This designation will apply until a notification of a change is posted on this website.

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.

• As of July 1, 2009, Pengrowth no longer reports or distributes K-1 forms. Pengrowth's income is now reported on a 1099-DIV that comes from your broker. 
• Please refer ALL taxation questions for taxation periods after July 2009 regarding the 1099-DIV to your brokerage or intermediary.  Pengrowth does not produce the 1099-DIV and cannot answer questions regarding the 1099 forms.

 2011 Taxation Year

Pengrowth understands that each payment in 2011 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. Computershare will send the 1099-DIV forms to all U.S. resident registered shareholders. 

Withholding Tax

The 15 percent withholding tax is part of a reciprocal tax treaty between Canada and the US.  When dividends or distributions cross the border, the Canadian government takes a 15 percent withholding.  Conversely, when a U.S. company pays a dividend or distribution to a Canadian resident, the US government also takes a 15 percent withholding tax. Due to Pengrowth's recent conversion from an income trust to a corporation, beginning with the February 15, 2011 payment, there will no longer be withholding tax deducted from IRAs or other non-taxable retirement accounts.

Unfortunately, the tax still applies to investments held 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. 

Tax Forms

U.S. Taxation, Regulation 1.6045B.1

DRIP Letter

Conversion Letter

2010

2009

2008

2007

2006

2005

2004