The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Canexus Income Fund Provides U.S. Tax Information

Thursday, March 31, 2011

Canexus Income Fund Provides U.S. Tax Information11:45 EDT Thursday, March 31, 2011CALGARY, ALBERTA--(Marketwire - March 31, 2011) - The following information is being provided to assist U.S. individual unitholders in reporting distributions received from Canexus Income Fund (TSX:CUS.UN) (the "Fund") during 2010.In consultation with its U.S. tax advisors, the Fund believes that the units of the Fund more likely than not will be properly classified as equity in a corporation, rather than debt, for U.S. federal income tax purposes and that distributions paid to individual U.S. unitholders will more likely than not be "qualified dividends" for U.S. federal income tax purposes. As such, the portion of the distributions made during 2010 that are considered dividends for U.S. federal income tax purposes should qualify for the reduced rate of tax applicable to long-term capital gains (where the holder meets certain criteria). Provided the 2010 Fund distributions are considered to be qualified dividends as noted above, the Fund has determined that 100 percent of distributions paid during the year will be taxable for U.S. tax purposes as "qualified dividends" with no return of capital. The Fund has not received an IRS letter ruling or a formal tax opinion from its tax advisors on these matters. U.S. unitholders should consult their individual tax advisors. About CanexusCanexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically-located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize unitholder returns and delivers high-quality products and services to its customers. Canexus trust units (CUS.UN) and convertible debentures (Series I – CUS.DB; Series III – CUS.DB.A) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.FOR FURTHER INFORMATION PLEASE CONTACT: Gary KuberaCanexus LimitedPresident and CEO(403) 571-7300ORRichard McLellanCanexus LimitedCFO(403) 571-7300www.canexus.ca