This page provides certain tax information for our investors and their investment advisors. Shareholders are advised to consult their personal tax advisors with respect to their particular circumstances.
Eligible Dividends for Canadian Tax Purposes:
Canadian Energy Services & Technology Corp (“CESTC”) hereby advises all shareholders that, effective from January 1, 2010, all dividends paid on its common shares to Canadian residents will be designated as “eligible dividends” for Canadian income tax purposes. This designation will apply until a notification of change is posted on this website. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.
1099-DIV Information Reporting for United States Tax Purposes:
If you are required to file a U.S. tax return, please note the following. Commencing May 6, 2003, Qualified Dividends paid by a Qualified Foreign Corporation became subject to U.S. income tax at the same 0% or 15% maximum rates that apply to net capital gains. In relation to the United States Jobs and Growth Tax Relief Reconciliation Act of 2003, it has been determined that CESTC is a Qualified Foreign Corporation for U.S. tax purposes and our dividends qualify for the reduced rates of tax. In order to claim the reduced rates of tax, a shareholder must own our stock for more than 60 days during the 120-day period beginning 60 days before the ex-dividend date. For more information on this act or the 1099-DIV form please contact your U.S. tax advisor or your local office of the Internal Revenue Service.
Corporate Conversion Transaction
Effective January 1, 2010, Canadian Energy Services L.P. (“CES” or the “Partnership”) and Canadian Energy Services Inc. (the “General Partner”) completed a transaction with Nevaro Capital Corporation (“Nevaro”) which resulted in the Partnership converting from a publicly traded Canadian limited partnership to a publicly traded corporation (the “Conversion”). The Conversion resulted in the unitholders of the Partnership becoming shareholders of Canadian Energy Services & Technology Corp. (“CESTC”) with no changes to the underlying business operations. CESTC trades on the TSX under the trading symbol “CEU” and on the OTCQX under the trading symbol “CESDF”. Therefore certain terms such as shareholder/unitholder and dividend/distribution may be used interchangeably below. For the year ended December 31, 2009 all distributions to unitholders were in the form of limited partnership unit distributions. In addition “CES” is used below to describe the business undertaken by the Partnership pre-Conversion and CESTC post-Conversion. As a result of converting to a corporate structure, the CUSIP number for CESTC changed from 13566V100 to 13566W108. 2009 is the final year for reporting partnership income on CDS and for issuing T5013’s as effective 2010 CESTC is a dividend paying corporation. The Partnership (Partnership Filer Identification Number: HA 9481698 and the Partnership Business Number: 807342274) was organized in accordance with the terms and conditions of a limited partnership agreement which provides that only persons who are resident in Canada, or, if partnerships, are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) (the “Tax Act”), may own units of the Partnership. Units may not be purchased as a “tax shelter investment” for the purposes of the Tax Act or by any entity an interest in which is a tax shelter investment.