Bayman Texan Energy Corp.

Canadian Shareholders

  

Canadian Shareholders

United States Shareholders

  

2012

The information contained herein is intended to provide general guidance to assist individual Canadian resident shareholders with the preparation of their tax returns. The summary is of a general nature only and is not intended to constitute legal or tax advice to any shareholder or potential shareholder of Bayman Texan Energy. Investors should consult their own tax advisors as to their particular tax consequences of holding shares in Bayman Texan Energy.

Since "converting" from a trust to a corporation on December 31, 2010, all dividends paid by Bayman Texan Energy have been designated as "eligible dividends" for Canadian income tax purposes. This designation will continue to apply until a notification of a change is posted on this website.

 

2011

The information contained herein is intended to provide general guidance to assist individual Canadian resident shareholders with the preparation of their 2011 tax returns. The summary is of a general nature only and is not intended to constitute legal or tax advice to any shareholder or potential shareholder of Bayman Texan Energy. Investors should consult their own tax advisors as to their particular tax consequences of holding shares in Bayman Texan Energy.

Bayman Texan Energy dividends declared in 2011 are designated as "eligible dividends" for Canadian income tax purposes.

Shares held within a deferred plan
Canadian Shareholders who held their shares in a registered retirement savings plan, registered retirement income fund, deferred profit sharing plan, registered education savings plan, registered disability savings plan or tax free savings account, or any other such registered plans (collectively referred to as "deferred plans") during 2011 are not required to report any income related to dividends received on their 2011 income tax return.

Shares held outside of a deferred plan
Canadian Shareholders who held their shares outside such deferred plans will receive a T5 statement of investment income. Canadian shareholders who held their shares in registered form (i.e., they have a physical share certificate to evidence their ownership), will receive a T5 slip directly from registrar and transfer agent, Valiant Trust Company. Canadian shareholders who held their shares through a broker or other intermediary, should receive a T5 slip directly from their broker or other intermediary and not from the transfer agent or from Bayman Texan Energy.

2010

The information contained herein is intended to provide general guidance to assist in income tax reporting for distributions declared to Canadian unitholders of the Trust in 2010. The summary is of a general nature only and is not intended to constitute legal or tax advice to any unitholder of the Trust or potential shareholder of Bayman Texan Energy. Investors should consult their own tax advisors as to their particular tax consequences.

For purposes of the Income Tax Act (Canada), the Trust was a mutual fund trust in 2010. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of, its unitholders. Distributions paid by the Trust can be both a return on capital (i.e., income) and a return of capital (i.e., tax deferred). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earned directly. The level of these tax deductions is primarily driven by the Trust's resource property deductions.

The distributions declared to Canadian unitholders in 2010 were 100% return on capital (taxable income), with 0% being a return of capital (tax deferred).

Trust units held within a deferred plan
Canadian unitholders who held their trust units in a registered retirement savings plan, registered retirement income fund, deferred profit sharing plan, registered education savings plan, registered disability savings plan or tax free savings account, or any other such registered plans (collectively referred to as “deferred plans”), are not required to report any income related to distributions received on their 2010 income tax return.

Trust units held outside of a deferred plan
Canadian unitholders who held their trust units outside such deferred plans will receive a T3 supplementary slip on or before March 31, 2011. Canadian unitholders that were registered unitholders, who received cash distributions during the period from the transfer agent, Valiant Trust Company, will receive a T3 supplementary slip directly from Valiant Trust Company. Canadian unitholders who held their trust units outside of a deferred plan, through a broker or other intermediary, should receive a T3 supplementary slip directly from their broker or other intermediary and not from the transfer agent or the Trust.

The T3 Supplementary slip will report only the taxable income component of the distributions. This income is taxed in the same manner as interest income.

The tax deferred, or return of capital, portion impacts the unitholder's original adjusted cost base of their trust units ("ACB"). The ACB is used in calculating capital gains or losses on the disposition of trust units. The ACB of each trust unit is reduced by the return of capital portion of distributions received. When a unitholder's ACB drops below zero during a taxation year, the negative amount is considered by the Canada Revenue Agency to be a capital gain and the ACB is re-set to zero by paying income tax on the capital gain resulting from the negative ACB.

The following table sets out the tax treatment of the 2010 monthly distributions for Canadian income tax purposes (Canadian dollars per unit):

Record DatePayment DateTaxable Amount
(Box 26 Other Income)
Tax Deferred Amount
(Box 42 Return of Capital)
Total Distributions
29-Jan-10 16-Feb-10 $0.18 $0.00 $0.18
26-Feb-10 15-Mar-10 $0.18 $0.00 $0.18
31-Mar-10 15-Apr-10 $0.18 $0.00 $0.18
30-Apr-10 17-May-10 $0.18 $0.00 $0.18
31-May-10 15-Jun-10 $0.18 $0.00 $0.18
30-Jun-10 15-Jul-10 $0.18 $0.00 $0.18
30-Jul-10 16-Aug-10 $0.18 $0.00 $0.18
31-Aug-10 15-Sep-10 $0.18 $0.00 $0.18
30-Sep-10 14-Oct-10 $0.18 $0.00 $0.18
29-Oct-10 15-Nov-10 $0.18 $0.00 $0.18
30-Nov-10 15-Dec-10 $0.18 $0.00 $0.18
31-Dec-10 17-Jan-11 $0.20 $0.00 $0.20
Total $2.18 $0.00 $2.18

2009

The information contained herein is intended to provide general guidance to assist in 2009 income tax reporting for holders of Bayman Texan Energy trust units who are Canadian residents. It is not intended to constitute legal or tax advice to any holder or potential holder of Bayman Texan Energy trust units. Readers should consult their own legal or tax advisors as to their particular tax consequences of holding Bayman Texan Energy trust units.

For the 2009 taxation year, the treatment of distributions for Canadian unitholders is 100% return on capital (taxable income) and 0% return of capital (tax deferred).

For purposes of the Income Tax Act (Canada), Bayman Texan Energy Trust (the "Trust") is a mutual fund trust. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of, its unitholders. Distributions paid by the Trust can be both a return of capital (i.e., tax deferred) and a return on capital (i.e., income). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earns directly. The level of these tax deductions is primarily driven by the Trust's resource property deductions.

Each year the taxable income portion, or return on capital, is calculated and reported in the Trust's T3 return and allocated to each unitholder who received distributions in that taxation year. T3 Supplementary forms are mailed to unitholders before March 31st. Registered unitholders will receive a T3 Supplementary form directly from the transfer agent. Beneficial unitholders will receive a T3 Supplementary form from their broker or other intermediary. The T3 Supplementary form will report only the taxable income component. This income is taxed in the same manner as interest income. The tax deferred, or return of capital, portion impacts the unitholder's original adjusted cost base of the units ("ACB"). The ACB is used in calculating capital gains or losses on the disposition of trust units. The ACB of each trust unit is reduced by the return of capital portion of distributions received. When a unitholder's ACB drops below zero during a taxation year, the negative amount is considered by the Canada Revenue Agency to be a capital gain and the ACB is re-set to zero by paying income tax on the capital gain resulting from the negative ACB.

Canadian unitholders who hold their trust units in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan, Registered Education Savings Plan, Registered Disability Savings Plan or Tax Free Savings Account need not report any income related to trust unit distributions on their 2009 income tax return.

The following table sets out the tax treatment of the 2009 monthly distributions for Canadian income tax purposes (Canadian dollars per unit):

Record DatePayment DateTaxable IncomeTax Deferred AmountTotal Distributions
30-Jan-09 17-Feb-09 $0.18 $0.00 $0.18
27-Feb-09 16-Mar-09 $0.12 $0.00 $0.12
31-Mar-09 15-Apr-09 $0.12 $0.00 $0.12
30-Apr-09 14-May-09 $0.12 $0.00 $0.12
29-May-09 15-Jun-09 $0.12 $0.00 $0.12
30-Jun-09 15-Jul-09 $0.12 $0.00 $0.12
31-Jul-09 17-Aug-09 $0.12 $0.00 $0.12
31-Aug-09 15-Sep-09 $0.12 $0.00 $0.12
30-Sep-09 15-Oct-09 $0.12 $0.00 $0.12
30-Oct-09 16-Nov-09 $0.12 $0.00 $0.12
30-Nov-09 15-Dec-09 $0.12 $0.00 $0.12
31-Dec-09 14-Jan-10 $0.18 $0.00 $0.18
Total $1.56 $0.00 $1.56
Based upon the Trust's current outlook, it is expected that the distributions in 2010 will be treated as 100% return on capital (taxable income) and no portion of the distributions will be considered return of capital (tax deferred) for Canadian income tax purposes.

2008

The information contained herein is intended to provide general guidance to assist in 2008 income tax reporting for holders of Bayman Texan Energy trust units who are Canadian residents. It is not intended to constitute legal or tax advice to any holder or potential holder of Bayman Texan Energy trust units. Readers should consult their own legal or tax advisors as to their particular tax consequences of holding Bayman Texan Energy trust units.

For the 2008 taxation year, the treatment of distributions for Canadian unitholders is 100% return on capital (taxable income) and 0% return of capital (tax deferred).

For purposes of the Income Tax Act (Canada), Bayman Texan Energy Trust (the "Trust") is a mutual fund trust. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of, its unitholders. Distributions paid by the Trust can be both a return of capital (i.e., tax deferred) and a return on capital (i.e., income). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earns directly. The level of these tax deductions is primarily driven by the Trust's resource property deductions.

Each year the taxable income portion, or return on capital, is calculated and reported in the Trust's T3 return and allocated to each unitholder who received distributions in that taxation year. T3 Supplementary forms are mailed to unitholders before March 31st. Registered unitholders will receive a T3 Supplementary form directly from the transfer agent. Beneficial unitholders will receive a T3 Supplementary form from their broker or other intermediary. The T3 Supplementary form will report only the taxable income component. This income is taxed in the same manner as interest income. The tax deferred, or return of capital, portion impacts the unitholder's original adjusted cost base of the units ("ACB"). The ACB is used in calculating capital gains or losses on the disposition of trust units. The ACB of each trust unit is reduced by the return of capital portion of distributions received. When a unitholder's ACB drops below zero during a taxation year, the negative amount is considered by the Canada Revenue Agency to be a capital gain and the ACB is re-set to zero by paying income tax on the capital gain resulting from the negative ACB.

Canadian unitholders who hold their trust units in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan or Registered Education Savings Plan need not report any income related to trust unit distributions on their 2008 income tax return.

The following table sets out the tax treatment of the Canadian 2008 monthly distributions (Canadian dollars per unit):

Record DatePayment DateTaxable Income (Income)Tax Deferred AmountTotal Distributions
31-Jan-08 15-Feb-08 $0.18 $0.00 $0.18
29-Feb-08 17-Mar-08 $0.18 $0.00 $0.18
31-Mar-08 15-Apr-08 $0.20 $0.00 $0.20
30-Apr-08 15-May-08 $0.20 $0.00 $0.20
30-May-08 16-Jun-08 $0.20 $0.00 $0.20
30-Jun-08 15-Jul-08 $0.25 $0.00 $0.25
31-Jul-08 15-Aug-08 $0.25 $0.00 $0.25
29-Aug-08 15-Sep-08 $0.25 $0.00 $0.25
30-Sep-08 15-Oct-08 $0.25 $0.00 $0.25
31-Oct-08 17-Nov-08 $0.25 $0.00 $0.25
28-Nov-08 15-Dec-08 $0.25 $0.00 $0.25
31-Dec-08 15-Jan-09 $0.18 $0.00 $0.18
Total $2.64 $0.00 $2.64
Based upon the Trust's current outlook, it is expected that the distributions in 2009 will be treated as 100% return on capital (taxable income) and no portion of the distributions will be considered return of capital (tax deferred) for Canadian income tax purposes.

2007

The information contained herein is intended to provide general guidance to assist in 2007 income tax reporting for holders of Bayman Texan Energy trust units who are Canadian residents. It is not intended to constitute legal or tax advice to any holder or potential holder of Bayman Texan Energy trust units. Readers should consult their own legal or tax advisors as to their particular tax consequences of holding Bayman Texan Energy trust units.

For the 2007 taxation year, the treatment of distributions is 100% return on capital (taxable income) and 0% return of capital (tax deferred) for Canadian unitholders.

For purposes of the Canadian Income Tax Act, Bayman Texan Energy Trust (the "Trust") is a mutual fund trust. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of unitholders. Distributions paid by the Trust can be both a return of capital (i.e. tax deferred) and a return on capital (i.e. income). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earns directly. The level of these tax deductions is primarily driven by the Trust's resource property deductions.

Each year the taxable income portion, or return on capital, is calculated and reported in the Trust's T3 return and allocated to each unitholder who received distributions in that taxation year. T3 Supplementary forms are mailed to unitholders before March 31st. Registered unitholders will receive a T3 Supplementary form directly from the transfer agent. Beneficial unitholders will receive a T3 Supplementary form from their broker or other intermediary. The T3 form will report only the taxable income component. This income is taxed in the same manner as interest income. The tax deferred, or return of capital, portion impacts the unitholder's original cost base of the units. The Adjusted Cost Base (ACB) is used in calculating capital gains or losses on the disposition of trust units. The ACB of each trust unit is reduced by the return of capital portion of distributions received. When a unitholder's ACB drops below zero during a taxation year, the negative amount is considered by the Canada Revenue Agency (CRA) to be a capital gain. Unitholders re-set their trust unit cost base to zero by paying income tax on the capital gain resulting from the negative ACB.

Canadian unitholders who hold their investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan or Registered Education Savings Plan need not report any income related to trust unit distributions on their 2007 income tax return.

The following table sets out the tax treatment of the Canadian 2007 monthly distributions:

Record DatePayment DateTaxable Income (Income)Tax Deferred AmountTotal Distributions
Jan. 31/07 Feb. 15/07 $0.18 $0.00 $0.18
Feb. 28/07 Mar. 15/07 $0.18 $0.00 $0.18
Mar. 30/07 Apr. 16/07 $0.18 $0.00 $0.18
Apr. 30/07 May 15/07 $0.18 $0.00 $0.18
May 31/07 Jun. 15/07 $0.18 $0.00 $0.18
Jun. 29/07 Jul. 16/07 $0.18 $0.00 $0.18
Jul. 31/07 Aug. 15/07 $0.18 $0.00 $0.18
Aug. 31/07 Sep. 17/07 $0.18 $0.00 $0.18
Sep. 28/07 Oct. 15/07 $0.18 $0.00 $0.18
Oct. 31/07 Nov. 15/07 $0.18 $0.00 $0.18
Nov. 30/07 Dec. 17/07 $0.18 $0.00 $0.18
Dec. 31/07 Jan. 15/08 $0.18 $0.00 $0.18
Total $2.16 $0.00 $2.16
Based upon the Trusts current outlook, it is expected that the distributions in 2008 will be treated as 100% return on capital (taxable income) and no portion of the distributions will be considered return of capital (tax deferred) for Canadian income tax purposes.

2006

The information contained herein is intended to provide general guidance to assist in 2006 income tax reporting for holders of Bayman Texan Energy trust units who are Canadian residents. It is not intended to constitute legal or tax advice to any holder or potential holder of Bayman Texan Energy trust units. Readers should consult their own legal or tax advisors as to their particular tax consequences of holding Bayman Texan Energy trust units.

For the 2006 taxation year, the treatment of distributions is 100% return on capital (taxable income) and 0% return of capital (tax deferred) for Canadian unitholders.

For purposes of the Canadian Income Tax Act, Bayman Texan Energy Trust (the "Trust") is a mutual fund trust. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of unitholders. Distributions paid by the Trust can be both a return of capital (i.e. tax deferred) and a return on capital (i.e. income). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earns directly. The level of these tax deductions is primarily driven by the Trust's resource property deductions.

Each year the taxable income portion, or return on capital, is calculated and reported in the Trust's T3 return and allocated to each unitholder who received distributions in that taxation year. T3 Supplementary forms are mailed to unitholders before March 31st. Registered unitholders will receive a T3 Supplementary form directly from the transfer agent. Beneficial unitholders will receive a T3 Supplementary form from their broker or other intermediary. The T3 form will report only the taxable income component. This income is taxed in the same manner as interest income. The tax deferred, or return of capital, portion impacts the unitholder's original cost base of the units. The Adjusted Cost Base (ACB) is used in calculating capital gains or losses on the disposition of trust units. The ACB of each trust unit is reduced by the return of capital portion of distributions received. When a unitholder's ACB drops below zero during a taxation year, the negative amount is considered by the Canada Revenue Agency (CRA) to be a capital gain. Unitholders re-set their trust unit cost base to zero by paying income tax on the capital gain resulting from the negative ACB.

Canadian unitholders who hold their investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan or Registered Education Savings Plan need not report any income related to trust unit distributions on their 2006 income tax return.

The following table sets out the tax treatment of the Canadian 2006 monthly distributions:

Record DatePayment DateTaxable Income (Income)Tax Deferred AmountTotal Distributions
Jan. 31/06 Feb. 15/06 $0.18 $0.00 $0.18
Feb. 28/06 Mar. 15/06 $0.18 $0.00 $0.18
Mar. 31/06 Apr. 17/06 $0.18 $0.00 $0.18
Apr. 28/06 May 15/06 $0.18 $0.00 $0.18
May 31/06 Jun. 15/06 $0.18 $0.00 $0.18
Jun. 30/06 Jul. 17/06 $0.18 $0.00 $0.18
Jul. 31/06 Aug. 15/06 $0.18 $0.00 $0.18
Aug. 31/06 Sep. 15/06 $0.18 $0.00 $0.18
Sep. 29/06 Oct. 16/06 $0.18 $0.00 $0.18
Oct. 31/06 Nov. 15/06 $0.18 $0.00 $0.18
Nov. 30/06 Dec. 15/06 $0.18 $0.00 $0.18
Dec. 29/06 Jan. 16/07 $0.18 $0.00 $0.18
Total $2.16 $0.00 $2.16
Based upon the Trusts current outlook, it is expected that the distributions in 2007 will be treated as 100 percent return on capital (taxable income) and no portion of the distributions will be considered return of capital (tax deferred) for Canadian income tax purposes.

2005

The information contained herein is intended to provide general guidance to assist in 2005 income tax reporting for holders of Bayman Texan Energy trust units who are Canadian residents. It is not intended to constitute legal or tax advice to any holder or potential holder of Bayman Texan Energy trust units. Readers should consult their own legal or tax advisors as to their particular tax consequences of holding Bayman Texan Energy trust units.

For the 2005 taxation year, the treatment of distributions is 85.0 % return on capital (taxable income) and 15.0% return of capital (tax deferred) for Canadian unitholders.

For purposes of the Canadian Income Tax Act, Bayman Texan Energy Trust (the "Trust") is a mutual fund trust. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of unitholders. Distributions paid by the Trust are both a return of capital (i.e. tax deferred ) and a return on capital (i.e. income). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earns directly. The level of these tax deductions is primarily driven by the Trust's resource property deductions.

Each year the taxable income portion, or return on capital, is calculated and reported in the Trust's T3 return and allocated to each unitholder who received distributions in that taxation year. T3 Supplementary forms are mailed to unitholders before March 31st. Registered unitholders will receive a T3 Supplementary form directly from the transfer agent. Beneficial unitholders will receive a T3 Supplementary form from their broker or other intermediary. The T3 form will report only the taxable income component. This income is taxed in the same manner as interest income. The tax deferred, or return of capital, portion impacts the unitholder's original cost base of the units. The Adjusted Cost Base (ACB) is used in calculating capital gains or losses on the disposition of trust units. The ACB of each trust unit is reduced by the return of capital portion of distributions received. When a unitholder's ACB drops below zero during a taxation year, the negative amount is considered by the Canada Revenue Agency (CRA) to be a capital gain. Unitholders re-set their trust unit cost base to zero by paying income tax on the capital gain resulting from the negative ACB.

Canadian unitholders who hold their investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan or Registered Education Savings Plan need not report any income related to trust unit distributions on their 2005 income tax return.

The following table sets out the tax treatment of the Canadian 2005 monthly distributions:

Record DatePayment DateTaxable Income (Income)Tax Deferred AmountTotal Distributions
Jan. 31/05 Feb. 15/05 $0.1275 $0.0225 $0.15
Feb. 28/05 Mar. 15/05 $0.1275 $0.0225 $0.15
Mar. 31/05 Apr. 15/05 $0.1275 $0.0225 $0.15
Apr. 29/05 May 16/05 $0.1275 $0.0225 $0.15
May 31/05 Jun. 15/05 $0.1275 $0.0225 $0.15
Jun. 30/05 Jul. 15/05 $0.1275 $0.0225 $0.15
Jul. 29/05 Aug. 15/05 $0.1275 $0.0225 $0.15
Aug. 31/05 Sep. 15/05 $0.1275 $0.0225 $0.15
Sep. 30/05 Oct. 17/05 $0.1275 $0.0225 $0.15
Oct. 31/05 Nov. 15/05 $0.1275 $0.0225 $0.15
Nov. 30/05 Dec. 15/05 $0.1275 $0.0225 $0.15
Dec. 31/05 Jan. 16/06 $0.1275 $0.0225 $0.15
Totals $1.53 $0.27 $1.80

2004

The information contained herein is intended to provide general guidance to assist in 2004 income tax reporting for holders of Bayman Texan Energy trust units who are Canadian residents. It is not intended to constitute legal or tax advice to any holder or potential holder of Bayman Texan Energy trust units. Readers should consult their own legal or tax advisors as to their particular tax consequences of holding Bayman Texan Energy trust units.

For the 2004 taxation year, the treatment of distributions is 84.5 % return on capital (taxable income) and 15.5% return of capital (tax deferred) for Canadian unitholders.

For purposes of the Canadian Income Tax Act, Bayman Texan Energy Trust (the "Trust") is a mutual fund trust. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of unitholders. Distributions paid by the Trust are both a return of capital (i.e. tax deferred ) and a return on capital (i.e. income). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earns directly. The level of these tax deductions is primarily driven by the Trust's resource property deductions.

Each year the taxable income portion, or return on capital, is calculated and reported in the Trust's T3 return and allocated to each unitholder who received distributions in that taxation year. T3 Supplementary forms are mailed to unitholders before March 31 st. Registered unitholders will receive a T3 Supplementary form directly from the transfer agent. Beneficial unitholders will receive a T3 Supplementary form from their broker or other intermediary. The T3 form will report only the taxable income component. This income is taxed in the same manner as interest income. The tax deferred, or return of capital, portion impacts the unitholder's original cost base of the units. The Adjusted Cost Base (ACB) is used in calculating capital gains or losses on the disposition of trust units. The ACB of each trust unit is reduced by the return of capital portion of distributions received. When a unitholder's ACB drops below zero during a taxation year, the negative amount is considered by the Canada Revenue Agency (CRA) to be a capital gain. Unitholders re-set their trust unit cost base to zero by paying capital gains tax on the negative cost base portion.

Canadian unitholders who hold their investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan or Registered Education Savings Plan need not report any income related to trust unit distributions on their 2004 income tax return.

The following table sets out the tax treatment of the Canadian 2004 monthly distributions:

Record DatePayment DateTaxable Income (Income)Tax Deferred AmountTotal Distributions
Jan. 30/04 Feb. 16/04 $0.12675 $0.02325 $0.15
Feb. 27/04 Mar. 15/04 $0.12675 $0.02325 $0.15
Mar. 31/04 Apr. 15/04 $0.12675 $0.02325 $0.15
Apr. 30/04 May 17/04 $0.12675 $0.02325 $0.15
May 31/04 Jun. 15/04 $0.12675 $0.02325 $0.15
Jun. 30/04 Jul. 15/04 $0.12675 $0.02325 $0.15
Jul. 30/04 Aug. 16/04 $0.12675 $0.02325 $0.15
Aug. 31/04 Sep. 15/04 $0.12675 $0.02325 $0.15
Sep. 30/04 Oct. 15/04 $0.12675 $0.02325 $0.15
Oct. 29/04 Nov. 15/04 $0.12675 $0.02325 $0.15
Nov. 30/04 Dec. 15/04 $0.12675 $0.02325 $0.15
Dec. 31/04 Jan. 17/05 $0.12675 $0.02325 $0.15
Totals $1.52100 $0.27900 $1.80

2003

For the 2003 taxation year, the treatment of distributions is 85.55% return on capital (taxable income) and 14.45% return of capital (tax deferred) for Canadian unitholders.

For purposes of the Canadian Income Tax Act, Bayman Texan Energy Trust (the 'Trust') is a mutual fund trust. Each year, an income tax return is filed by the Trust with the taxable income allocated to, and taxable in the hands of unitholders. Distributions paid by the Trust are both a return of capital (i.e. a repayment of a portion of the investment) and a return on capital (i.e. income). The allocation between these two streams is dependent upon the tax deductions that the Trust is entitled to claim against royalty and interest income received and any income the Trust earns directly. The level of these tax deductions is primarily driven by COGPE (Canadian Oil and Gas Property Expense) representing the cost of acquiring the royalty from the operating company or the Trust's direct investment in revenue producing property.

Each year the taxable income portion, or return on capital, is calculated and reported in the Trust's T3 return and allocated to each unitholder who received distributions in that taxation year on the T3 Supplementary forms, which are mailed to unitholders before March 31st. Registered unitholders will receive a T3 Supplementary form directly from the transfer agent. Beneficial unitholders will receive a T3 Supplementary form from their broker or other intermediary. The T3 slip will report only the taxable income component. This income is taxed in the same manner as interest income. The tax deferred, or return of capital, portion impacts the unitholder's cost base of the units, and an adjusted cost base (ACB) should be calculated. The difference between a unitholder's ACB and any disposition price should be reported as a capital gain.

Canadian unitholders who hold their investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan or Registered Education Savings Plan need not report any income related to trust unit distributions on their 2003 income tax return. Unitholders should always seek qualified tax advice.

The following table sets out the tax treatment of the Canadian 2003 monthly distributions:

Record DatePayment DateTaxable Income (Income)Tax Deferred AmountTotal Distributions
Oct. 15/03 Sep. 30/03 $0.1283 $0.0217 $0.15
Nov. 17/03 Oct. 31/03 $0.1283 $0.0217 $0.15
Dec. 15/03 Nov. 28/03 $0.1283 $0.0217 $0.15
Jan. 15/04 Dec. 31/03 $0.1283 $0.0217 $0.15
Totals $0.5132 $0.0868 $0.60
  
  

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