Fording reports tax information for 2004 distributions
07 Febbraio 2005 - 7:30PM
PR Newswire (US)
Fording reports tax information for 2004 distributions CALGARY,
Feb. 7 /PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX:
FDG.UN, NYSE: FDG) today reports the following income tax
information for cash distributions declared in 2004 for unitholders
resident in Canada and the United States. Unitholders are strongly
urged to consult their tax advisors with respect to their
particular circumstances. Canadian Tax Information for Unitholders
Resident in Canada The following information is based on the
Trust's understanding of the Income Tax Act (Canada) and
regulations thereunder, and is provided for general information
only. T3 Statement of Trust Income Allocations and Designations
forms are expected to be available by March 31, 2005. The following
table provides the cash distributions declared in 2004, in Canadian
dollars. Amount per Unit
------------------------------------------------- Record Payment
Other Trust Actual Return of Total date date income Dividend
Capital distribution (taxable) income (tax deferred) paid (taxable)
-------------------------------------------------------------------------
March 31, April 15, $ 1.000000 $ - $ - $ 1.000000 2004 2004 June
30, July 15, 1.000000 - - 1.000000 2004 2004 September October 15,
1.100000 - - 1.100000 30, 2004 2004 December January 14, 0.942249
0.336865 $ 0.020886 1.300000 31, 2004 2005 ---------- ----------
---------- ----------- Total paid $ 4.042249 $ 0.336865 $ 0.020886
$ 4.400000 ---------- ---------- ---------- ----------- ----------
---------- ---------- -----------
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The "Other Trust income" and "Actual Dividend income" amounts,
which is the portion of the cash distributions that is to be
included in the income of unitholders, will be reported on the T3
statement. The portion of cash distributions that constitutes a
return of capital is not taxable but should be deducted from the
adjusted cost base of unitholder's units of the Trust. Canadian Tax
Information for Non-resident Unitholders Distributions of income by
the Trust to non-residents of Canada will be subject to Canadian
withholding tax of 25% subject to reduction under the provisions of
any applicable tax treaty or convention. Unitholders who are not
residents of Canada for income tax purposes are advised to seek
advice from a tax advisor in their country of residence for the tax
treatment of distributions. United States Tax Information for
Unitholders Resident in the United States Distributions by the
Trust in 2004 are considered foreign-source dividend income under
U.S. federal income tax principles, reportable on a Form 1099.
Providing that applicable holder-level requirements are met, these
distributions are "qualified dividends," eligible for taxation at
reduced rates under U.S. federal income tax legislation. Income
distributed by the Trust to U.S. unitholders is generally subject
to Canadian withholding tax of 15%. U.S. unitholders are advised to
seek advice from their tax advisor for the tax treatment of
distributions. Cash distributions in 2004 are reported as follows
in U.S. dollars. U.S. $ Amount per Unit
------------------------------------- Record date Payment date
Qualified dividends Withholding tax (taxable) deducted in Canada
-------------------------------------------------------------------------
December 31, 2003 January 15, 2004 $ 0.773800 $ 0.116070 March 31,
2004 April 15, 2004 0.763100 0.114465 June 30, 2004 July 15, 2004
0.746000 0.111900 September 30, 2004 October 15, 2004 0.791200
0.118680 ----------- ------------ Total paid $ 3.074100 $ 0.461115
----------- ------------ ----------- ------------
-------------------------------------------------------------------------
It is possible that the U.S. dollar amount was different for non-
registered, or beneficial, unitholders receiving their payment from
an intermediary or brokerage firm using different exchange rates.
The dividend payable to record holders on December 31, 2004 and
paid on January 14, 2005 will be reported for the 2005 calendar
year. About Fording Fording Canadian Coal Trust is an open-ended
mutual fund trust. Through investments in metallurgical coal and
industrial minerals mining and processing operations, the Trust
makes quarterly cash distributions to unitholders. The Trust,
through its wholly-owned subsidiary, Fording Inc., holds a 60%
interest in the Elk Valley Coal Partnership and is the world's
largest producer of the industrial mineral wollastonite. Elk Valley
Coal Partnership, comprised of Canada's senior metallurgical coal
mining properties, is the world's second largest exporter of
metallurgical coal, currently supplying approximately 25 million
tonnes of high-quality coal products annually to the international
steel industry. The Trust's shares are traded on the Toronto Stock
Exchange under the ticker symbol FDG.UN and on the New York Stock
Exchange under the symbol FDG. DATASOURCE: Fording Canadian Coal
Trust CONTACT: Susan J. Soprovich, Director, Investor Relations,
(403) 260-9834, ; Catherine Hart, Coordinator, Investor Relations,
(403) 260-9817,
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