DividendsIn determining the dividend to be paid to our shareholders, the Board reviews, among other things, our historical financial performance and internal forecasts for the near term, including capital requirements, as well as market activity and conditions. After review of all factors, the Board has approved a 30% increase in the quarterly cash dividend to $0.065 per share from $0.05 per share ($0.26 per share versus $0.20 per share per annum), starting with the dividend payable to shareholders of record as of September 30, 2010. The Board will continue to review future dividends, taking into account all factors noted above. Newalta Dividend Information - 2010
Newalta Dividend Information - 2009
Prior to converting from an income fund to a corporation effective January 1, 2009, Newalta Income Fund provided regular distributions to unitholders. Historical Tax InformationPursuant to a plan of arrangement involving, among others, Newalta Income Fund, holders of trust units of Newalta Income Fund exchanged their trust units for common shares of Newalta Inc. on December 31, 2008 (the "Conversion"). The following information is intended to assist former holders of trust units of Newalta Income Fund in the preparation of their 2008 Income Tax Return. The information contained herein is based on Newalta's understanding of the Income Tax Act (Canada) (the "Tax Act") and the regulations thereunder and is provided for general information only. Former holders are advised to consult their personal tax advisors with respect to their particular circumstances. Trust Units held within an RRSP, RRIF, RESP or DPSP No amounts are required to be reported on the 2008 T1 Income Tax Return where trust units of Newalta Income Fund were held within an RRSP, RRIF, RESP or DPSP. Trust Units held outside of an RRSP, RRIF, RESP or DPSP If you held trust units of Newalta Income Fund outside of an RRSP, RRIF, RESP or DPSP, through a broker or other intermediary you will receive a T3 Supplementary Information slip directly from your broker or intermediary, not from the transfer agent or Newalta. Former registered holders of trust units of Newalta Income Fund who did not hold their trust units through a broker or intermediary will receive a T3 Supplementary Information slip directly from Valiant Trust Company. The attached "Schedule 1" includes supplementary information on the Canadian tax characterization of the 2008 distributions declared and is shown on a per unit basis. Under Paragraph 12(1)(m) of the Tax Act, the taxable amount allocated by Newalta Fund in 2008 to the holders of trust units must be reported by the holders in their 2008 Income Tax Return. Accordingly, the taxable amount of distributions (i.e., "Other Income" Box (26) and "Dividend Income" Box (49) on the T3 Supplementary Information slip) with respect to record dates from January 1, 2008 up to and including December 31, 2008 are included in your T3 Supplementary Information. In accordance with subsection 89(14) of the Tax Act, the amounts specified as dividend income in Schedule 1 will, by virtue of subsection 104(19) of the Tax Act, be an eligible dividend within the meaning of subsection 89(1) of the Tax Act in respect of each trust unit. The deadline for mailing all T3 Supplementary Information slips as required by the Canada Revenue Agency is March 31, 2009. Reduction to Adjusted Cost Base Former holders of trust units of Newalta Income Fund are required to reduce the adjusted cost base of their trust units of Newalta Income Fund by the return of capital amount. The adjusted cost base is used in calculating capital gains or losses on the disposition of trust units of Newalta Income Fund if the owner held the trust units of Newalta Income Fund as capital property. A former individual holder of trust units who exchanged trust units of Newalta Income Fund for common shares of Newalta Inc. as part of the Conversion will, unless such holder makes a joint election with Newalta Inc. under section 85 of the Tax Act, generally realize a capital gain (or capital loss) equal to the amount by which the aggregate of the fair market value of such common shares received is greater (or less) than the adjusted cost base of the trust units so exchanged plus any reasonable costs incurred by such holder in connection with the exchange. In these circumstances, the cost of the common shares of Newalta Inc. acquired will be equal to their fair market value. An eligible former holder of trust units may be able to defer all or a portion of any capital gain which would otherwise result from the exchange by making a joint election with Newalta Inc. under section 85 of the Tax Act. The closing price of the trust units of Newalta Income Fund on December 31, 2008 (the date all trust units were exchanged for common shares of Newalta Inc.) was $6.40. For a discussion regarding the treatment of capital gains and losses, you should refer to the Management Information Circular of Newalta Income Fund dated November 12, 2008 and the press release of Newalta Income Fund dated December 3, 2008 titled "Newalta Income Fund Updates Unitholders On Proposed Changes To Tax Legislation In Connection With Previously Announced Conversion". Schedule 1 Newalta Income Fund 2008 - T3 Information for Canadian Residents The following table outlines the breakdown of distributions declared per trust unit of Newalta Income Fund with respect to record dates for the period January 1, 2008 up to and including December 31, 2008 for Canadian income tax purposes.
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