Energy Trusts hope Auditor General will set the record straight on tax leakage

CALGARY, March 10 /CNW/ - Following a move by the Federal Liberals, members of the Coalition of Canadian Energy Trusts (CCET) are also asking Auditor General Sheila Fraser for a formal investigation into the tax leakage claims made by the government as a basis for its October 31, 2006 decision totax income trusts.

"After 17 months and many requests for the details of the Finance Department's calculations, we remain stonewalled by the federal government on this issue," says Sue Riddell Rose, president and CEO of Paramount Energy Trust and co-chair of the CCET. "Neither we nor other experts could find evidence of tax leakage to back up the government's claim, so we are encouraged that the Auditor General may be able to set the record straight with an investigation."

In December 2006, the Coalition presented a 251-page report detailing the role played by energy trusts in the Canadian economy and outlining the expected negative results of the government's broken promise not to tax income trusts (Canadian Energy Trusts: An Integral Component of the Canadian Oil and Gas Industry). In the report, the CCET disputed the claim of tax leakage and publicly invited the government to disclose its calculations. The government has yet to respond.

A formal request through the Freedom of Information Act, seeking data on which the government based its decision to tax trusts, yielded no information other than blacked-out documents.

"Canadians deserve to know what facts the government used for such an important change in policy," says Riddell Rose. "This broken promise by the Conservative government continues to have lasting and disastrous affects on the average Canadian investor, and it has shaken the industry to the core. As advocates for our unitholders, many of them seniors, who were severely mistreated by the government with the sudden change in the rules, we will continue to press the government for the answers we've sought since the beginning." The CCET continues to believe that any concerns the government may have had about energy trusts can be rectified through communication and
understanding leading to a solution that would not be so harmful to innocent unitholders.

The Coalition of Canadian Energy Trusts represents over 30 energy trusts headquartered in Canada and employing thousands of Canadians. It also represents the millions of Canadian unitholders who saw the value of their investments drop by $35 billion following the announcement of the so-called Tax Fairness Plan on October 31, 2006. More information about the Coalition and its partners can be found at www.canadianenergytrusts.ca.

For further information: or to schedule interviews, contact: Daorcey Le Bray, NATIONAL Public Relations, (403) 444-1482, dlebray@national.ca

Albertans say it's time to expect more from government

Hard working Albertans, investors and energy trusts want their voice heard in Ottawa

CALGARY, June 25 /CNW/ - Tired of political misdirection and broken promises, energy trust employees and investors are joining with the Coalition of Canadian Energy Trusts (CCET) to launch a new Alberta-focused campaign to demand greater accountability and honesty from the federal government. This action stems directly from broken Conservative campaign promises to not tax income trusts.

"Broken promises will gravely impact our province and the whole country," says Sue Riddell Rose, co-chair of the CCET and president and CEO of Paramount Energy Trust. "We have been told by our unitholders, employees, Albertans, Canadians and business leaders to 'Don't stop now! Keep up the fight!' It is ironic that from the Conservative heartland of Alberta, we hear this message the loudest."

The Coalition is inviting all Albertans to demand honesty and respect from their MPs through a website at www.iexpectmore.ca. The campaign is a joint effort between the CCET, its employees and the Canadian Retired and Income Investors Association (CRIIA).

"I believe we should expect more from our politicians. We should expect nothing less than honesty," says Riddell Rose. "I believe that a promise made should be a promise kept. We shouldn't accept that politicians can get away with not telling the truth."

On October 31, 2006, Finance Minister Jim Flaherty presented his so-called Tax Fairness Plan breaking the Harper Conservatives' promise to not tax income trusts. This decision caused an immediate loss in the market costing investors approximately $35 billion. The federal Conservative government has also unexpectedly removed capital incentives from the oil sands and launched an attack on the energy industry through its recently announced Green Plan.

"I lost tens of thousands of dollars" says Gary Wallat, a retired 71 year old Albertan and member of the CRIIA. "The income derived from Income Trusts helps me meet my living expenses. I trusted the government when they said they weren't going to tax income trusts and I invested my hard-earned money accordingly. To have a Conservative Government which promised accountability and a transparency do something like this is unbelievable. When I voted Conservative I certainly believed they would be more trustworthy."

The campaign features radio and print advertising. Calgarians can watch for the ads to appear over the next five weeks with radio starting today and print beginning Tuesday.

For further information: interviews or campaign materials, please contact: Daorcey Le Bray, NATIONAL Public Relations, (403) 531-0331, dlebray@national.ca

Related:

iexpectmore.ca

COALITION OF CANADIAN ENERGY TRUSTS (CCET) - Previous News Releases

Energy Trusts Pursue Their Case in the Senate

CALGARY, June 20 /CNW/ - June 20, 2007: Canada's energy trusts presented a strong case to the Senate outlining why the government's so called Tax Fairness Plan is simply wrong and should not be advanced in the budget.

Both the Coalition of Canadian Energy Trusts (CCET) and the Canadian Energy Infrastructure Group (CEIG) independently presented to the Senate of Canada Committee on National Finance a compelling case why the tax changes will have a strong negative impact on trusts and, in turn, continue to financially harm millions of hard working Canadians.

Speaking on behalf of the CCET, Marcel Coutu, Co-Chairman of CCET and President and CEO of Canadian Oil Sands Trust, highlighted:

The Coalition has presented an in-depth report outlining the importance of energy trusts and that the government's silence on this document suggests it is not refutable;

The government heard from its own expert witness "inconvenient truths" noting the important role trusts play in the Canadian capital markets; and

The Finance Minister is wrong with the opinion that income trust vehicles do not exist in the United States. Independent research from four months ago notes there were 214 publicly traded trust entities with a combined market cap of $475 billion and that this number has now grown to 225.

Robert Michaleski, President and CEO of Pembina Pipeline Income Trust, presented key points on behalf of CEIG:

Canadians rely on infrastructure trusts for the delivery of half of their oil supply, and a substantive amount of natural gas liquids and natural gas are transported daily;

The long-term infrastructure assets of trusts are similar to the model of REITs (Real Estate Income Trusts) and should be given the same tax treatment; and

The government's stated desire to be a world energy leader could be eroded by potential foreign take over of Canadian-managed and operated energy assets.

Collectively the energy trusts agreed:

Energy trusts do not cause tax leakage;

Taxes are not avoided-they are transferred to and paid by the unitholders at generally higher tax rates;

Energy trusts contribute substantively to Canada's energy security through enhanced production from mature fields and efficient transportation of products;

US energy trusts in the form of MLPs and LLCs not only exist but are expanding rapidly; reversing the trend of cross-border acquisitions:

The CCET and CEIG presentations concluded that energy trusts should be excluded from the tax changes.

For further information: Daorcey Le Bray, NATIONAL Public Relations,
(403) 531-0331, dlebray@national.ca

Related:

COALITION OF CANADIAN ENERGY TRUSTS (CCET) - Previous News Releases

CANADIAN ENERGY INFRASTRUCTURE GROUP (CEIG) - Previous News Releases