Note:
Distributions
paid on Jan 10,
2005 were
included in 2004
Tax Information.
Quadravest Product
Capital Gains
Dividend Income
Fgn Non Business
Other Taxable
Non Taxable
Total
Split Yield Capital
(YLD)
0%
0%
0%
0%
0%
0
Split Yield Class I Pfd
(YLD.PR.A)
0%
$1.10
(100%)
0%
0%
0%
$1.10
(100%)
Split Yield Class II Pfd
(YLD.PR.B)
0%
0%
0%
0%
$1.05
(100%)
$1.05
(100%)
Financial Services Income STREAMS Capital Yield
(STR)
0%
0%
0%
0%
0%
0
Financial Services Income STREAMS Equity Dividend
(STR.E)
0%
$0.21956
(13.69%)
0%
0%
$1.38424
(86.31%)
$1.6038
(100%)
Capital Gains Income STREAMS Capital Yield
(CGQ)
0%
0%
0%
0%
0%
0
Capital Gains Income STREAMS Equity Dividend
(CGQ.E)
0%
$0.18007
(18.71%)
0%
0%
$0.78243
(81.29%)
$0.9625
(100%)
Income STREAMS III Capital Yield
(STQ)
0%
0%
0%
0%
0%
0
Income STREAMS III Equity Dividend
(STQ.E)
0%
$0.17622
(18.31%)
0%
0%
$0.78628
(81.69%)
$0.9625
(100%)
Financial 15
Split Class
A Share
(FTN)
$0.96338
(66.44%)
$0.48662
(33.56%)
0%
0%
0%
$1.45
(100%)
Financial 15
Split
Preferred Share
(FTN.PR.A)
0%
$0.525
(100%)
0%
0%
0%
$0.525
(100%)
Dividend 15
Split Class
A Share
(DFN)
$1.42496
(89.06%)
$0.17504
(10.94%)
0%
0%
0%
$1.60
(100%)
Dividend 15
Split
Preferred Share
(DFN.PR.A)
0%
$0.4813
(100%)
0%
0%
0%
$0.4813
(100%)
Financial 15
Split II
Class A Share
(FFN)
$0.35904
(32.64%)
$0.74096
(67.36%)
0%
0%
0%
$1.10
(100%)
Financial 15
Split II
Preferred Share
(FFN.PR.A)
0%
$0.4813
(100%)
0%
0%
0%
$0.4813
(100%)
US
Financial 15
Split
Class A Share
(FTU)
$0.67608
(75.12%)
$0.22392
(24.88%)
0%
0%
0%
$0.90
(100%)
US
Financial 15
Split
Preferred Share
(FTU.PR.A)
0%
$0.4133
(100%)
0%
0%
0%
$0.4133
(100%)
Canadian
Life
Companies
Split
Class A Share
(LFE)
$0.26152
(37.36%)
$0.43848
(62.64%)
0%
0%
0%
$0.70
(100%)
Canadian
Life
Companies
Split
Preferred Share
(LFE.PR.A)
0%
$0.3258
(100%)
0%
0%
0%
$0.3258
(100%)
Prime
Rate
Plus
Class A Share
(PPL)
$0.0438
(13.47%)
$0.28121
(86.53%)
0%
0%
0%
$0.3250
(100%)
Prime
Rate
Plus
Preferred Share
(PPL.PR.A)
0%
$0.1991
(100%)
0%
0%
0%
$0.1991
(100%)
Tax info for Corporations is reported on a Canada Customs & Revenue Agency T5
Form. The T5 Form is produced by the broker and mailed to the investor no later than February 28. Please contact your broker regarding T5 enquiries.
TRUSTS 2005
(based on
record date)
Quadravest Product
Capital Gains
Dividend Income
Fgn Non Business
Other Taxable
Non Taxable
Total
Income Financial PLUS
(INZ.UN)
0%
0%
0%
0%
$2.4996
(100%)
$2.4996
(100%)
Income Financial
(INC.UN)
$1.22712
(57.75%)
$0.16488
(7.76%)
0%
0%
$0.73296
(34.49%)
$2.12496
(100%)
American Income
(USA.UN)
0%
0%
0%
0%
$0.90065
(100%)
$0.90065
(100%)
AmeriStar
(RSP.UN)
0%
0%
0%
0%
$1.05145
(100%)
$1.05145
(100%)
Tax info for Trust Funds is reported on a Canada Customs & Revenue Agency T3
Form. The T3 Form is produced by the broker and mailed to the investor no later than March 31. Please contact your broker regarding T3 enquiries.
TYPES OF INCOME EARNED
Capital gains
are taxed at much lower rates than interest income, dividend income and foreign
source non business income. The capital gains inclusion rate was 50% for 2005.
The T-3 or T-5 you receive from your investment dealer will show the breakdown
of the capital gains received from any of the Quadravest products.
Dividends
received from Canadian companies are taxed at a much lower rate than interest
income. This is because the corporation has already paid tax on its earnings
before paying a dividend to the Fund. On your tax return, you actually report a
grossed-up dividend and then claim an offsetting dividend tax credit. The T-3
or T-5 you receive from your investment dealer will show the breakdown of the
dividend income received from any of the Quadravest products.
Interest income
received from a money market instrument or bond is fully taxable in the same
manner as a salary or pension.
Foreign non business income
includes foreign dividends and are fully taxable, however there will be a
credit for any foreign withholding taxes paid.
Non-taxable distributions received must be used by the investor to
reduce the adjusted cost base (ACB) of their shares/units. This will impact the
capital gains realized by each investor upon any future dispositions of the
shares/units. As an example, if a 50 cent per unit non-taxable distribution was
received during the year, the investor would reduce the cost base of each unit
by 50 cents.
GENERAL TAX INFORMATION
1.
* Based on top combined Federal/Ontario personal marginal rate.
2.
Tax rates on Capital Gains, Dividend Income and Interest Income at the highest combined federal/provincial rate (Ontario) are:
Type Of Income
2005
Capital Gains
23.2%
Dividend Income
31.3%
Interest Income
46.4%
3.
On a before tax yield equivalent basis, a 10% capital gain yield
earned
in
2005 is equivalent to pre tax interest income of approximately 14.3%
(based
on
highest
combined
federal/provincial
rate
in
Ontario).
4.
The table below lists Top Personal Marginal Rates (%) effective for the 2005 tax year for the top federal tax bracket.
Capital Gains
Canadian Dividends
Interest & Ordinary Income
Quebec
24.1
32.8
48.2
Nfld
24.3
37.3
48.6
B.C.
21.8
31.6
43.7
Sask.
22.0
28.3
44.0
N.B.
23.4
37.3
46.8
P.E.I.
23.7
32.0
47.4
N.S.
24.1
33.1
48.2
Manitoba
23.2
35.1
46.4
Ontario
23.2
31.3
46.4
Yukon
21.2
28.6
42.4
Alberta
19.5
24.1
39.0
N.W.T. & Nun.
20.3
26.5
40.5
Rates include all federal, provincial and territorial income taxes and surtaxes.
The information presented may change at any time as a result of further tax changes made at the federal or provincial level and may vary depending on your own personal tax situation. Please contact your tax advisor.
