Brompton Funds
As the Fund does not intend to pay regular monthly distributions it is not expected that T3 slips will be issued for any year and no tax reporting will be required unless a Unit is sold or redeemed.
Non-Resident Unitholders are not expected to be subject to any Canadian tax (including withholding tax) on Units held by them, except in certain limited circumstances. A Non-Resident Unitholder will not be subject to taxation in Canada in respect of a capital gain realized on the disposition of Units unless such Units constitute "taxable Canadian property" for the purposes of the Tax Act and the Non-Resident Unitholder is not afforded relief under an applicable income tax convention. Units will normally not be taxable Canadian property at a particular time provided that the Non-Resident Unitholder, persons with whom the Non-Resident Unitholder does not deal at arm's length (within the meaning of the Tax Act), or the Non-Resident Unitholder together with such persons, did not own 25% or more of the issued Units at any time during the 60-month period preceding the particular time.
Residents of Canada
The Fund does not expect to pay monthly distributions and Unitholders are not expected to pay any tax on Units held by them until the redemption or other disposition of such Units. It is expected that Unitholders will be subject to tax on any capital gains realized on the redemption or other disposition of their Units.
Non-Resident Unitholders are not expected to be subject to any Canadian tax (including withholding tax) on Units held by them, except in certain limited circumstances. A Non-Resident Unitholder will not be subject to taxation in Canada in respect of a capital gain realized on the disposition of Units unless such Units constitute "taxable Canadian property" for the purposes of the Tax Act and the Non-Resident Unitholder is not afforded relief under an applicable income tax convention. Units will normally not be taxable Canadian property at a particular time provided that the Non-Resident Unitholder, persons with whom the Non-Resident Unitholder does not deal at arm's length (within the meaning of the Tax Act), or the Non-Resident Unitholder together with such persons, did not own 25% or more of the issued Units at any time during the 60-month period preceding the particular time.