As a corporation, Enerplus makes dividend payments to its shareholders and they are eligible for enhanced dividend tax credits.
Effective July 2011, dividends paid by Enerplus to Canadian shareholders qualify for the enhanced dividend tax credit resulting in an effective tax rate of 16% - 36%, for those individuals in the highest marginal tax bracket, depending upon provincial jurisdiction and individual circumstances.
The above information is general information only for Canadian resident shareholders who hold their shares as capital property and should not be construed as tax advice to any particular shareholder. Shareholders are advised to consult their tax advisors regarding questions relating to the tax treatment of Enerplus dividends and the computation of the cost base of their investment in Enerplus.
Archived Tax Letters for Enerplus Corporation & Enerplus Resources Fund