Daylight Energy Provides 2010 Tax Information for U.S. Shareholders

Daylight Energy Ltd. ("Daylight") (TSX:DAY) is pleased to provide 2010 tax
information for its U.S. shareholders. 


The following information is being provided to assist U.S. individuals in
reporting distributions and dividends received during 2010 on their Internal
Revenue Service ("IRS") Form 1040, "U.S. Individual Income Tax Return" ("Form
1040"). This summary is of a general nature only and is not intended to be legal
or tax advice to any investor or potential investor. Readers should consult
their own legal and tax advisors as to their particular tax consequences and
reporting obligations.


On May 7th, 2010, Daylight Resources Trust (the "Trust") converted from a trust
to a corporation, named Daylight Energy Ltd. Unitholders of the Trust received,
for each trust unit held, one common share of Daylight. For U.S. taxpayers, the
conversion is expected to be a tax-free rollover, so no capital gains are
expected to be triggered for most typical U.S. investors. Following the
conversion, the Trust discontinued cash distributions and Daylight commenced
paying cash dividends with the final trust distribution paid on May 17, 2010 to
unitholders of record on April 30, 2010. 


DIVIDENDS PAID AS A CORPORATION

In consultation with its U.S. tax advisors, Daylight has determined that
dividends paid to individual U.S. shareholders should be considered "qualified
dividends" for U.S. federal income tax purposes and be eligible for the reduced
tax rates applicable to long-term capital gains.


From June to December 2010, Daylight paid "qualified dividends", before
withholding tax, as outlined below.




----------------------------------------------------------------------------
                                                                            
                                                                    Taxable 
                                                                  Qualified 
                                           Dividend  Conversion    Dividend 
Record Date                Payment Date       ($CDN)    Rate (1)       ($US)
----------------------------------------------------------------------------
May 31, 2010              June 15, 2010       $0.05      0.9720   $0.048600 
----------------------------------------------------------------------------
June 30, 2010             July 15, 2010       $0.05      0.9613   $0.048065 
----------------------------------------------------------------------------
July 30, 2010           August 16, 2010       $0.05      0.9586   $0.047930 
----------------------------------------------------------------------------
August 31, 2010      September 15, 2010       $0.05      0.9726   $0.048630 
----------------------------------------------------------------------------
September 30, 2010     October 15, 2010       $0.05      0.9893   $0.049465 
----------------------------------------------------------------------------
October 29, 2010      November 15, 2010       $0.05      0.9935   $0.049675 
----------------------------------------------------------------------------
November 30, 2010     December 15, 2010       $0.05      0.9965   $0.049825 
----------------------------------------------------------------------------
Total                                         $0.35               $0.342190 
----------------------------------------------------------------------------



(1) Bank of Canada Noon Rate 

DISTRIBUTIONS PAID AS A TRUST

From January to May 2010, Daylight paid cash distributions, before withholding
tax, as outlined below. 




----------------------------------------------------------------------------
                                                          Taxable           
                                                        Qualified Return of 
Record     Payment Distribution Conversion Distribution  Dividend   Capital 
Date          Date        ($CDN)   Rate (1)        ($US)     ($US)     ($US)
----------------------------------------------------------------------------
December   January                                                          
31, 2009  15, 2010        $0.08     0.9721    $0.077768     $0.00 $0.077768 
----------------------------------------------------------------------------
January   February                                                          
29, 2010  15, 2010        $0.08     0.9542    $0.076336     $0.00 $0.076336 
----------------------------------------------------------------------------
February     March                                                          
26, 2010  15, 2010        $0.08     0.9788    $0.078304     $0.00 $0.078304 
----------------------------------------------------------------------------
March 31,    April                                                          
2010      15, 2010        $0.08     0.9986    $0.079888     $0.00 $0.079888 
----------------------------------------------------------------------------
April 30,   May 17,                                                         
2010          2010        $0.08     0.9611    $0.076888     $0.00 $0.076888 
----------------------------------------------------------------------------
Total                     $0.40               $0.389184     $0.00 $0.389184 
----------------------------------------------------------------------------



(1) Bank of Canada Noon Rate

Units Held Outside of a Qualified Retirement Plan

The cash distributions the Trust paid from January to May 2010 to U.S.
individual unitholders represent a 100% return of capital.


For U.S. federal income tax purposes, in reporting a return of capital with
respect to distributions received, U.S. unitholders are required to reduce the
cost base of their trust units by the total amount of distributions received
that represent a return of capital. This amount is non-taxable if it is a return
of cost base in the trust units. If the full amount of the cost base has been
recovered, any further return of capital distributions should be reported as
capital gains.


U.S. unitholders are encouraged to utilize the Qualified Dividends and Capital
Gain Tax Worksheet of Form 1040 to determine the amount of tax that may be
otherwise applicable.


U.S. unitholders who hold their trust units through a stockbroker or other
intermediary should receive tax reporting information from their stockbroker or
other intermediary. We expect that the stockbroker or other intermediary will
issue a Form 1099-DIV, "Dividends and Distributions" or a substitute form
developed by the stockbroker or other intermediary. Daylight does not provide
unitholders with Form 1099-DIV. Information on the Form 1099-DIV issued by the
brokers or other intermediaries may not accurately reflect the information in
this press release for a variety of reasons. Investors should consult their
brokers and tax advisors to ensure that the information presented here is
accurately reflected on their tax returns. Brokers and/or intermediaries may or
may not be required to issue an amended Form 1099-DIV.


The information in this release is provided for general information only and is
not intended to be an exhaustive discussion of all possible income tax
consequences. Investors are encouraged to seek advice from a qualified tax
advisor in their country of residence to obtain guidance with respect to the
appropriate tax treatment of their distributions.


Units Held Within a Qualified Retirement Plan

No amounts are required to be reported on an IRS Form 1040 where Daylight units
are held within a qualified retirement plan.


CANADIAN WITHHOLDING TAX

For Canadian income tax purposes, 100% of distributions and dividends payable to
non-residents of Canada are normally subject to a 25% Canadian withholding tax.
However, the withholding tax for residents of the United States is reduced to
15% in accordance with a reciprocal tax treaty between Canada and the United
States. 


Where shares are held outside a qualified retirement account, U.S taxpayers may
be eligible for a foreign tax credit with respect to the Canadian withholding
taxes paid. Where shares are held in a qualified retirement account, the same
withholding taxes apply but the amount is not creditable for U.S. tax purposes.
U.S. taxpayers may apply for a reimbursement of withholding taxes from Canada
Revenue Agency by completing Form NR7-R "Application for Refund of Part XIII Tax
Withheld" where shares are held in certain qualified retirement accounts.


The amount of Canadian tax withheld should be reported on Form 1116, "Foreign
Tax Credit (Individual, Estate, or Trust)". Information regarding the amount of
Canadian tax withheld in 2010 should be determined from your own records and is
not available from Daylight. Amounts over withheld, if any, from Canada should
be claimed as a refund from the Canada Revenue Agency no later than two years
after the calendar year in which the tax was withheld and should not be claimed
as a credit against your U.S. income tax liability.


Daylight is a growing intermediate oil and natural gas producing company with a
high quality suite of resource play assets in Western Canada. Our highly focused
team utilizes our technical expertise in exploitation, development, and
acquisitions to create long-term value for our shareholders. Our team has
developed a multi-year inventory of repeatable, low risk exploitation resource
play projects with substantial potential reserve additions on assets we
currently own and control in the premier Pembina Cardium light oil fairway and
in the premier Deep Basin area of Alberta and British Columbia. 


Daylight has approximately 210 million common shares outstanding which trade on
the TSX under the symbol DAY. Daylight Series C and D convertible debentures
trade on the TSX under the symbols DAY.DB.C and DAY.DB.D, respectively.
Ceridian HCM (TSX:DAY)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024