Is Encana considered a Qualified Foreign Corporation under the United States Jobs and Growth Tax Relief Reconciliation Act of 2003 in relation to 1099-DIV reporting?
Yes. It has been determined that Encana is a Qualified Foreign Corporation and 100% of our dividends will qualify for the new reduced rates. As of May 6, 2003, qualified dividends will be subject to the same 5% or 15% maximum tax rate that applies to net capital gain. In order to qualify for the capital gains rates, a shareholder must own the stock for more than 60 days during the 120-day period beginning 60 days before the ex-dividend date. For more information on this act or the 1099-DIV form please visit http://www.irs.gov or contact an accountant or professional tax advisor.
