CALGARY--(CCNMatthews - Jan. 25) - NAL Oil
& Gas Trust (TSX:NAE.UN) (the "Trust" or "NAL") today announced
certain information applicable to U.S. investors in preparing their U.S.
federal income tax returns.
For U.S. tax purposes NAL has not elected to be a partnership and,
according to its tax advisors, should be treated as a corporation by its
U.S. investors. Under U.S. federal tax law, 100 percent of the Trust's
2006 distributions should be considered dividends for U.S. income tax
purposes.
NAL believes that the 2006 distributions paid to U.S. residents
should be treated as "qualified dividends" under the Jobs and Growth Tax
Relief Reconciliation Act of 2003 and, generally, these dividends
should be eligible for the maximum tax rate of 15% applicable to
"qualified dividends". However, the individual taxpayer's situation must
be considered before making this determination.
Unitholders who are resident in the U.S. are subject to a 15%
Canadian withholding tax on the distributions received from NAL. U.S.
unitholders should receive a NR4 statement regarding, among other
things, the aggregate distributions NAL paid for the year and the amount
of Canadian withholding tax withheld from such distributions.
Canadian withholding taxes should generally qualify for a foreign
tax credit for the purposes of computing U.S. federal income taxes.
The above information is of a general nature only and does not
address U.S. state or local tax treatment, and is not intended to
constitute legal or tax advice to any holder of NAL units. U.S.
investors should consult their own legal or tax advisors as to their
particular tax consequences of holding NAL units, including the proper
U.S. federal income tax treatment of distributions from NAL.
NAL Oil & Gas Trust is an open-end investment trust that
generates distributions through the acquisition, development, production
and marketing of oil, natural gas and natural gas liquids. The Trust
owns high quality assets in Alberta, Saskatchewan and Ontario. Trust
units trade on the Toronto Stock Exchange under the symbol "NAE.UN".
Contact Information:
Gordon Currie
Manager, Investor Relations
(403) 294-3620 or Toll Free: (888) 223-8792
Fax: (403) 515-3407
Email: Investor.Relations@nal.ca
Website: www.nal.ca