Shareholders who are not residents of Canada for income tax purposes are encouraged to seek advice from a qualified tax advisor in the country of residence for the tax treatment of dividends.
All dividends paid or credited, or deemed to be paid or credited, on shares to a shareholder who is not a resident of Canada for tax purposes generally will be subject to Canadian withholding tax at a rate of 25% of the gross amount of the dividend, unless the rate is reduced under the provisions of an applicable income tax convention between Canada and the non-resident shareholder's jurisdiction of residence. Eagle Energy Inc.'s transfer agent, Computershare, is required to withhold the required amount of withholding tax from the dividend, and to remit it to CRA for the account of the non-resident shareholder. Information regarding the amount of Canadian tax withheld should be available through Computershare or the non-resident shareholder's broker and cannot be provided directly by Eagle Energy Inc. The rate of withholding tax under the Canada – U.S. Income Tax Convention (1980) (the "U.S. Treaty
") applicable to a non-resident shareholder who (i) is a resident of the United States for the purposes of the U.S. Treaty, (ii) is the beneficial owner of the dividend, (iii) is entitled to all of the benefits under the U.S. Treaty, and (iv) holds less than 10% of the voting stock of Eagle Energy Inc. generally will be 15%.
The CRA has introduced forms to be completed by non-resident shareholders that reside in countries with which Canada has a tax treaty to certify that they are eligible for treaty benefits in that country in order to continue to have non-resident tax withheld at the reduced tax rate specified by the applicable tax treaty. Non-resident shareholders wishing to benefit from the withholding tax reductions should send the duly completed CRA form to their Investment Broker, with a copy of the completed CRA form to Eagle Energy Inc. at Suite 2710, 500 – 4th Avenue S.W., Calgary, Alberta, T2P 2V6 Attention: Chief Financial Officer. Links to the appropriate form are below:
Absent the receipt of such forms, withholding will be at the statutory rate of 25%. Amounts over-withheld, if any, from Canada should be claimed as a refund from the CRA no later than two years after the calendar year in which the payment was paid using CRA Form NR7-R