Chemtrade Logistics Income Fund Confirms Decision to Retain Income Trust Structure
Anticipates Not Being Subject to SIFT Tax
TORONTO, November 10, 2010 – Chemtrade Logistics Income Fund (TSX: CHE.UN) today confirmed its earlier announced decision that it does not intend to convert to a corporation when the new Specified Investment Flow-Through (SIFT) rules come into effect in 2011.
In October 2007, the Fund announced that retaining its income trust structure was beneficial to its Unitholders as the Fund’s SIFT tax would be less than 10%.
The Fund now believes it will not be subject to any SIFT tax. The Fund also expects that over 50% of the Fund’s current annual distributions of $1.20 per unit will qualify as a taxable Canadian dividend, which should be beneficial to Canadian resident tax-paying Unitholders.
This news release contains certain statements which may constitute “forward-looking” statements within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario). The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “expected”, “intend”, “may”, “will”, “project”, “plan”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this news release describe the expectations of Chemtrade as of the date of this news release. Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, we cannot guarantee that any forward-looking statement will materialize. Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business. We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of the Fund, including but not limited to:
- the likelihood of a possible conversion of the Fund to a corporation;
- the applicability of SIFT tax to the Fund; and
- the ability of distributions to qualify as a taxable Canadian dividend, the percentage thereof to so qualify and the effect of such qualification on Canadian resident tax-paying Unitholders.
Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.
* * * *
For further information:
President & CEO
Tel: (416) 496-4176
Vice President, Finance & CFO
Tel: (416) 496-4177