Tax Information

The Fund is a "mutual fund trust" as defined in the Income Tax Act (Canada) (the "Act"). Units in the Fund are qualified investments for registered retirement savings plans, registered retirement income funds, deferred profit sharing plans and registered education savings plans under the Act, and are not "foreign property" within the meaning of the Act.

Cash distributions to unitholders are comprised of an income or taxable component and a return of capital component. The specific breakdown re: distributions in a particular year will be provided to the unitholders after the end of the year.

Trust Income Allocation Summary

	Total $ Dist./Unit (2007)	Total $ Dist./Unit (2006)	Total $ Dist./Unit (2005)	Total $ Dist./Unit (2004)	Total $ Dist./Unit (2003)
Taxable Income	0.77649	0.74322	0.81781	0.69398	0.26544
Non-taxable Income	0.18351	0.18268	0.09219	0.16677	0.14706
Total Distribution	0.96000	0.92590	0.91000	0.86075	0.41250

2007 Tax Information

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2006 Tax Information

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2005 Tax Information

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2004 Tax Information

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2003 Tax Information

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The taxable component represented 80.88% of the 2007 Enbridge Income Fund distributions, 80.270% of the 2006 distributions, 89.869% of the 2005 distributions, 80.625% of the 2004 distributions, and 64.349% of the 2003 distributions.

The Fund estimates that approximately 80% of the 2008 distribution will be taxable.

As regards the taxable component, it will be mainly ordinary income for tax purposes although there may also be a dividend component that will qualify for the dividend tax credit when received by an individual resident in Canada. The portion of a distribution that is considered a return of capital is not immediately taxable but rather reduces the unitholder's tax basis in the unit on which paid. This will increase a capital gain/reduce a capital loss on any ultimate disposition of the unit. To the extent that the tax basis of a unit would otherwise be less than nil, the negative amount will be deemed by the Act to be a capital gain.

A unitholder will receive a "T3 Supplementary" slip from either his/her broker. This slip will indicate the taxable and return of capital components of the distributions. The Canada Customs and Revenue Agency requires that T3 Supplementary slips be mailed out by March 31 of the year following the calendar year being reported on.

The information above is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any holder or potential holder of Fund units. Consequently, holders and potential holders of Fund units should consult their own tax advisors with respect to their particular circumstances.

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