1. Who is eligible to invest in Inter Pipeline's Class A limited partnership units (Class A units) ?
2. What will happen if a non-eligible person acquired Inter Pipeline Class A units?
3. Is Inter Pipeline required to have an annual unitholders meeting?
4. As a Class A unitholder, am I responsible for completing my own T5013 or Releve 15 form?
5. When will the T5013 or Releve 15 forms be mailed to unitholders?
6. Who should I contact if my T5103 form or Releve 15 form was completed incorrectly or missing information?
7. What portion of the 2007 distributions is considered to be taxable income or a return of capital?
8. Do you have an estimate of what portion of 2008 distributions will be taxable or a return of capital?
9. Can you please provide a breakdown of the taxable portion of your distributions since inception?
10. What is Inter Pipeline's long-term corporate credit rating?
11. Does Inter Pipeline have a Distribution Reinvestment Plan (DRIP) or Optional Unit Purchase Plan (OUPP)?
12. Why do the senior officers and directors of Inter Pipeline own very little of the Class A units personally? |
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| 1. Who is eligible to invest in Inter Pipeline's Class A limited partnership units (Class A units)? |
Inter Pipeline Fund was created pursuant to a partnership agreement and registered as a limited partnership under the laws of the Province of Alberta on October 9, 1997. The limited partnership agreement requires that all limited partners are Eligible Investors. As such, this means only persons who are residents of Canada, or if partnerships, are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) are permitted to purchase and own Class A units of Inter Pipeline.
In most cases, unitholders with addresses outside of Canada will not be Eligible Investors. |
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| 2. What will happen if a non-eligible person acquired Inter Pipeline Class A units? |
In the event that Class A units have been acquired by a non-eligible person, the Partnership Agreement contains transfer and ownership constraint provisions which authorize the General Partner to, among other things, deny a transfer of Class A units to any person who is not an Eligible Investor and require the sale of Class A units held by persons who are not Eligible Investors. |
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| 3. Is Inter Pipeline required to have an annual unitholders meeting? |
No, the limited partnership agreement does not require Inter Pipeline to have an annual unitholders meeting. |
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| 4. 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 will responsible for completing and mailing your T5013 or Releve 15 tax 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 tax situation regarding tax-related matters. |
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| 5. When will the T5013 or Releve 15 forms be mailed to unitholders? |
According to the Income Tax Act (Canada), brokers have until March 31 of the current year to mail out the T5013 or Releve 15 forms to individual unitholders. |
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| 6. Who should I contact if my T5103 form or Releve 15 form was completed incorrectly or 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. |
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| 7. What portion of the 2007 distributions is considered to be taxable income or a return of capital? |
During 2007, Inter Pipeline declared cash distributions totalling $0.8400 per Class A unit. The 2007 taxable portion amounts to $0.8400 per unit or 100.0000% of total cash distributions. There was no return of capital in 2007. |
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| 8. Do you have an estimate of what portion of 2008 distributions will be taxable or a return of capital? |
At the present time, it is very difficult to predict future tax deduction amounts due to the nature of our pipeline and natural gas liquids extraction businesses. Inter Pipeline typically reports current year tax information in early March the following year. |
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| 9. 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. |
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| 10. What is Inter Pipeline's long-term corporate credit rating? |
Inter Pipeline has been assigned a long-term corporate credit rating of BBB investment grade by Standard & Poor's and DBRS. |
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| 11. Does Inter Pipeline have a Distribution Reinvestment Plan (DRIP) or Optional Unit Purchase Plan (OUPP)? |
Yes, additional information on both Inter Pipeline's DRIP and OUPP programs can be found under the DRIP section of the Investor Relations tab. |
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| 12. Why do the senior officers and directors of Inter Pipeline own very little of the Class A units personally? |
Inter Pipeline Fund is an Alberta limited partnership formed under the Partnership Act (Alberta) and it consists of limited partners who are members of the public (Class A unitholders), and a general partner, Pipeline Management Inc.
The general partner is required by law to carry on the business of Inter Pipeline and, by law and by contract, assumes unlimited liability in respect of thereof.
A limited partner may lose the protection of the limited liability afforded to him by the Partnership Act if a limited partner takes part in the control of the business of the limited partnership. For example, limited partners are not permitted to take part in the administration, management, control or operation of the business of Inter Pipeline, to transact any business on behalf of Inter Pipeline, or make any commitment on behalf of Inter Pipeline. The general partner must assume and does assume these roles in order to preserve the limited liability of the limited partners.
Accordingly, Inter Pipeline, operating through its general partner, Pipeline Management Inc., carries on the business of operating pipeline systems and natural gas liquid extraction plants. As long as individual limited partners take no part in the control of the business of Inter Pipeline, they need not be concerned about loss of limited liability. In all cases, the general partner assumes such unlimited liability.
As a result, many directors and officers of limited partnerships (including Inter Pipeline) refrain from owning limited partnership units. |
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