Bonterra Energy Income Trust - Tax Information for 2008

About this update from Bonterra Energy Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 25 /CNW/ - Bonterra Oil and Gas Ltd. (Formally Bonterra\nEnergy Income Trust - "the Trust") (www.bonterraenergy.com) (TSX: BNE\n(formally BNE.UN)) is pleased to provide the following tax information to\nassist the Trust's former Unitholders in the preparation of their 2008 income\ntax returns.\n\n\n Canadian Tax Information\n ------------------------\n\nThe tax breakdown of the distributions is as follows:\n\n Percentage\n ----------\n\nTaxable Income (Other Income) 85.16%\nReturn of Capital 14.84%\n ------\n 100.00%\n -------\n -------\n\nIt should be noted that the return of capital, to the extent the units are\nin a taxable account, reduces the adjusted cost basis of your units. Kindly\nconsult your tax advisor if you require further information.\n\n Joint Tax Election Package\n --------------------------\n\n\nBonterra Oil & Gas Ltd. (Bonterra) has made available a Joint Tax\nElection package which contains a letter of instruction for eligible former\nBonterra Energy Income Trust Unitholders. A Unitholder who is an Eligible\nHolder (see definition below), and under the Bonterra Arrangement, exchanged\nTrust Units for Bonterra Shares, may make a joint election with Bonterra\npursuant to subsection 85(1) of the Tax Act (Form T2057) (or, in the case of a\nholder that is a partnership (Form T2058), pursuant to subsection 85(2) of the\nTax Act) and thereby obtain a full or partial tax-deferred "rollover" for\nCanadian income tax purposes, depending on the amount specified in that\nelection (the "Elected Amount") and the adjusted cost base to the Unitholder\nof such Trust Units at the time of the Bonterra Arrangement. Eligible Holders\nmay elect so as not to realize any capital gain for the purposes of the Tax\nAct on the Bonterra Arrangement.\n\n\nOnly Eligible Holders are permitted to make this election jointly with\nBonterra. An Eligible Holder is a former holder of Trust Units who is:\n\n\n- A resident of Canada for purposes of the Tax Act, other than those\n exempt from tax under the Act, such as an RRSP, RRIF, RESP or pension\n plan; or\n- A partnership that is a Canadian partnership for the purposes of the\n Tax Act and if one or more of the partners would be an Eligible\n Holder if such partner held the Trust Units directly.\n\n\nThe Joint Tax Election package has been...

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