Find current and historical tax information about Enbridge Income Fund Holdings Inc. (ENF)
This information is of a general nature and not exhaustive of all possible income tax considerations. It is not intended to be legal or tax advice to any particular or potential shareholder or investor. Shareholders or potential shareholders should consult their own legal and tax advisors as to the specific tax consequences applicable to their own particular circumstances.Canadian Shareholders
Common share dividends paid by ENF will generally be designated as “eligible dividends” for Canadian income tax purposes. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.
Canadian beneficial shareholders who received dividends outside of an RRSP, RRIF or DPSP should receive a T5 Supplementary slip from their brokerage firm or intermediary. Canadian registered shareholders will receive a T5 Supplementary slip from CST Trust Company. The deadline for issuance of T5 Supplementary slips is two months after the end of the calendar year being reported on. Please refer questions regarding the T5 slips directly to your brokerage firm or CST Trust Company.
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.Non-resident Shareholders
Common share dividends paid by ENF will be subject to Canadian withholding tax at the rate of 25% unless the rate is reduced under the provisions of a tax treaty between Canada and the non-resident shareholder’s jurisdiction of residence. Where the non-resident shareholder is a United States resident entitled to benefits under the Canada-U.S. tax treaty, the rate of Canadian withholding tax on dividends is generally reduced to 15%. You may be eligible to claim a credit or deduction against your local taxes with respect to these Canadian non-resident withholding taxes.
ENF is considered to be “a qualified foreign corporation” and the dividends paid on its common shares are considered to be “qualified dividends” as those terms are defined in the U.S. Internal Revenue Code. If you have any questions regarding the taxation of Canadian dividends in your local jurisdiction, please contact your local tax advisor.Dividend Reinvestment Plan (DRIP)
Generally, dividends invested in additional shares under the DRIP are still subject to tax in the same manner as normal or cash dividends. Typically, the amount reinvested through the DRIP will be added to the adjusted cost base of your ENF common shares for the purpose of computing any subsequent gains or losses thereon.
Non-residents who participate in the DRIP should be aware that the amount of any dividend designated for reinvestment will be reduced by the applicable Canadian non-resident withholding tax. U.S. residents are not entitled to participate in the DRIP.
You should consult your tax advisor regarding the tax implications of your participation in the DRIP.