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This information is provided for general information purposes only and is not intended to be, nor should it be construed to be legal, business or tax advice. Inter Pipeline Ltd. (“Inter Pipeline”) recommends shareholders consult with a qualified tax advisor in their country of residence to obtain guidance with respect to their particular income tax situation.

Tax Information: Canadian Residents

Eligible dividends for Canadian tax purposes

Inter Pipeline advises shareholders that all dividends declared and paid on its common shares will be designated as “eligible dividends” for Canadian income tax purposes. The first such dividend was paid on or about October 15, 2013 to shareholders of record on September 23. 2013. This designation will continue to apply to all future dividends, as declared by the Board of Directors, until notification of a change is posted on this website.

Shares held within an RRSP, RRIF, RESP, DPSP or TFSA

Canadian resident individual shareholders who hold their Inter Pipeline common shares in a Registered Retirement Savings Plan (“RRSP”), Registered Pension Plan (“RPP”), Registered Retirement Income Fund (“RRIF”), Registered Education Savings Plan (“RESP”), Deferred Profit Sharing Plan (“DPSP”), Tax Free Savings Account (“TFSA”) or any other such registered plans do not need to report income related to cash dividends on their T1 Income Tax Return.

Shares held outside of an RRSP, RRIF, RESP, DPSP or TFSA

Shares held outside of an RRSP, RRIF, RESP, DPSP or TFSA

Canadian resident beneficial shareholders who hold their Inter Pipeline common shares outside of a RRSP, RPP, RRIF, RESP, DPSP, TFSA or other such registered plan will receive a T5 – Statement of Investment Income (“T5 Slip”) directly from their broker, investment dealer, financial institution, or other intermediary, not from Computershare Trust Company of Canada (“Computershare”) or Inter Pipeline.
Registered shareholders will receive a T5 Slip directly from Computershare and not from a broker, investment dealer, financial institution, other intermediary or Inter Pipeline.
The deadline for mailing T5 Slips as required by Canada Revenue Agency is the last day of February following the year in which the dividends were paid .

Tax Information: Non-Residents of Canada

Canadian Withholding Tax

Dividends payable by Inter Pipeline to shareholders who are non-resident of Canada for Canadian income tax purposes (“Non-Residents”) are generally subject to a 25% Canadian withholding tax unless the rate has been reduced pursuant to a tax treaty between Canada and the Non-Resident’s jurisdiction of residence. For example, an individual US resident shareholder who is entitled to the benefit of the US-Canada tax treaty may have their rate of witholding reduced to 15% based on their particular facts and circumstances.

Non-Residents are advised that they should obtain their own personal tax advise with respect to Canadian withholding tax and whether or not they are eligible to recover all or a portion of the tax withheld in Canada.

Tax Information for US Residents

Inter Pipeline anticipates its common shares should be classified as equity in a qualifying foreign corporation and that dividends paid to its individual US resident holders should be treated as qualified dividends. Inter Pipeline does not anticipate that any portion of dividends paid during the year are treated as a non-taxable return of capital.

Inter Pipeline is not required to prepare or issue a Form 1099 DIV. US resident shareholders may receive a Form 1099 DIV from their broker or intermediary and should consult their brokers or tax advisors to ensure their information is accurately reflected on their tax returns.

As stated above, Canadian withholding tax applies on dividends to US resident holders. The rate of withholding tax depends on the treatment of the US resident shareholder as a qualified person under the US-Canada treaty based on the particular holder’s status. Canadian withholding tax should not apply to dividends paid on common shares held in a qualified retirement plan such as an IRA.

Holders or potential holders of Inter Pipline shares should consult their own tax advisors regarding the particular treatment of holding Inter Pipeline shares.

 

 

 

Historical Tax Information

2013 Tax Package - All of the below

Please note that the sample T5013 and Releve 15 forms attached above are prepared on the basis of an individual holding 1,000 Class A units throughout 2013 and thus received $747.50 in distributions.

Please be advised that Inter Pipeline does not prepare the T5013 or Releve 15 forms which you receive. Rather, you receive your T5013 and Releve 15 forms from either the entity which holds your investment (e.g. investment advisor) or Inter Pipeline's transfer agent, Computershare.

2012 Tax Package - All of the below

Please note that the sample T5013 and Releve 15 forms attached above are prepared on the basis of an individual holding 1,000 Class A units throughout 2012 and thus received $1055 in distributions.

Please be advised that Inter Pipeline does not prepare the T5013 or Releve 15 forms which you receive. Rather, you receive your T5013 and Releve 15 forms from either the entity which holds your investment (e.g. investment advisor) or Inter Pipeline's transfer agent, Computershare.

2011 Tax Package - All of the below

Please note that the sample T5013 and Releve 15 forms attached above are prepared on the basis of an individual holding 1,000 Class A units throughout 2011 and thus received $967.50 in distributions.

Please be advised that Inter Pipeline does not prepare the T5013 or Releve 15 forms which you receive. Rather, you receive your T5013 and Releve 15 forms from either the entity which holds your investment (e.g. investment advisor) or Inter Pipeline's transfer agent, Computershare.

2010 Tax Package - All of the below

Please note that the sample T5013 and Releve 15 froms attached above are prepared on the basis of an individual holding 1,000 Class A units throughout 2010 and thus received $905 in distributions.

Please be advised that Inter Pipeline does not prepare the T5013 or Releve15 forms which you receive. Rather, you receive your T5013 and Releve 15 forms from either the entity which holds your investment (e.g. investment advisor) or Inter Pipeline's transfer agent, Computershare.

2009 Tax Package - All of the below

Please note that the sample T5013 and Releve 15 froms attached above are prepared on the basis of an individual holding 1,000 Class A units throughout 2009 and thus received $845 in distributions.

Please be advised that Inter Pipeline does not prepare the T5013 or Releve15 forms which you receive. Rather, you receive your T5013 and Releve 15 forms from either the entity which holds your investment (e.g. investment advisor) or Inter Pipeline's transfer agent, Computershare.

2008 Tax Package - All of the below

Please be advised that Inter Pipeline does not prepare the T5013 or Releve15 forms which you receive. Rather, you receive your T5013 and Releve 15 forms from either the entity which holds your investment (e.g. investment advisor) or Inter Pipeline's transfer agent, Computershare.

2007 Tax Package - All of the below

Please be advised that Inter Pipeline does not prepare the T5013 or Releve15 forms which you receive. Rather, you receive your T5013 and Releve15 forms from either the entity which holds your investment (e.g. investment advisor) or Inter Pipeline's transfer agent, Computershare.

 

2013 Tax FAQs

1. As a Class A unitholder, am I responsible for completing my own T5013 or Releve 15 form?

Neither Inter Pipeline nor Class A unitholders are responsible for completing individual T5013 or Releve 15 tax forms.

If your Inter Pipeline Class A units are registered directly with Computershare Trust Company of Canada (Computershare), then Computershare is responsible for completing and mailing your T5013 or Releve15 form.

If your Inter Pipeline Class A units are held beneficially through a brokerage firm, then your brokerage firm will be responsible for completing and mailing the T5013 or Releve 15 form.

Unitholders are advised to consult their own tax advisors as to their particular income situation regarding tax-related matters.

2. When will the T5013 forms be mailed to unitholders?

According to the Income Tax Act (Canada), preparers have until March 31 of the current year to mail out the T5013 or Releve 15 forms to individual unitholders.

3. Who should I contact if my T5013 form or Releve 15 form was completed incorrectly or was missing information?

If your T5013 form is incorrect or missing information, please contact your broker or Computershare. Inter Pipeline is not responsible for completing or mailing individual tax forms to unitholders.

4. What portion of the 2013 distributions is considered to be taxable income or a return on capital?

During the period from January 2013 to August 2013, while Inter Pipeline was structured as a limited partnership, cash distributions totalling $0.7475 per Class A unit were declared. The 2013 taxable portion amounts to $0.08423 per unit or 11.26823% of total cash distributions. The 2013 return of capital was $0.66327 per unit or 88.73177% of total cash distributions.

5. Can you please provide a breakdown of the taxable portion of your distributions since inception?

Tax information, including a breakdown of income and return of capital, can be found under unitholder information. To access this pdf file now, please click here.

6. Why is the dividend declared on September 23, 2013 and all subequent dividends declared in 2013 excluded from my T5013 slip?

The dividend declared on September 23, 2013 and paid on October 15, 2013 was a dividend paid by Inter Pipeline Ltd. This and all subsequent dividends declared in 2013 will be reported to shareholders for tax purposes on a separate T5 slip.

7. How do the amounts found on my T5013 slip add up to the distributions that I received?

The following table summarizes the amounts found on the T5013 slip for an investor who owned 1,000 units and received $747.50 in partnership distributions for the 2013 taxation year:

2013 Taxation Year
Federal / Quebec Reference Amount
Box 132 / Box6a: Actual amount of eligible dividends $24.03
Box 135 / Box 8: Foreign interest income $90.18
Box 113 / Box 43: Return of capital $663.27
Box 210 / Box 15a: Carrying Charges ($25.71)
Amount before capital loss $751.77
Box 151 / Box 12: Capital loss ($4.27)
Total distributions paid $747.50
8. Why did I receive a T5013 slip and a T5 slip for the 2013 taxation year?

On September 1, 2013, Inter Pipeline Fund converted to a publicly traded corporate entity and started to pay monthly dividends rather than monthly partnership distributions. Monthly cash distributions from January 2013 to August 2013 were partnership distributions and are reported on the T5013 slip. The last such partnership distribution had a record date of August 22, 2013 and was paid on September 16, 2013. All subsequent cash payments to shareholders are dividends that are reported to shareholders on a T5 slip.

9. Why are there only three cash payments recorded as dividends on my 2013 T5 slip?

The taxable income associated with the partnership distributions of Inter Pipeline Fund were allocated to partners based on the record date of the distribution. Dividends paid by Inter Pipeline Ltd. post corporate conversion are recorded as taxable income when received rather than on the record date. As a result, the dividend paid by Inter Pipeline Ltd. with a record date of December 23, 2013 and paid on January 15, 2014 should not be reported on your 2013 T5 slip. Rather, it will be reported on your 2014 T5 slip. This results in only 11 cash payments made by Inter Pipeline that are reported to shareholders for tax purposes in 2013.

 

Return of Capital Summary

Inter Pipeline - Return of Capital Summary

 

Advisory: Unitholders should be aware that their participation in the Distribution Reinvestment Plan and the Optional Unit Purchase Plan does not relieve them of any liability for Canadian income taxes.

Partnership Units may only be held by Eligible Investors. Eligible Investors are persons who are residents of Canada, or, if partnerships, are Canadian partnerships, in each case, for purposes of the Income Tax Act (Canada). Persons holding an interest in which it would be considered a "tax shelter investment" for purposes of the Income Tax Act (Canada) are also prohibited from holding Units.

Unitholders are advised to consult their own tax advisors as to their particular income tax situation regarding tax-related matters.