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U.S. Tax Reporting

RBC Dominion Securities will be issuing U.S.-based tax reporting slips to all clients who are American citizens or to clients who have provided an IRS Form W-9. Your 1099-B (Reportable Distributions), 1099-INT (Record of Interest) and 1099DIV (Record of Dividends), if applicable to your account activity in 2007, will be mailed by January 31, 2008. Similarly, in March, we will mail you a copy of your 1042-S (U.S. Source Income). All U.S. tax slips pertaining to assets in Tax Year 2007 will be mailed to clients and a copy to the IRS.

January mailing of U.S. Tax Slips for American clients (or with W-9)
March mailing of U.S. Tax Slips for American clients (or with W-9)

Reporting Investment Gains and Losses in American Currency
As the same income could be reported on both the U.S. and Canadian tax slips, it is very important to ensure that:

All taxable income is properly reported on the appropriate income tax returns;
Income is not double reported on any one of the tax returns; and
Appropriate foreign tax credits are claimed to eliminate the potential of double taxation.

Due to the complexity of the steps required to ensure all of the above are met, it is strongly suggested that any taxpayer who receives both U.S. and Canadian tax slips discuss these issues with a qualified tax advisor knowledgeable in both U.S. and Canadian tax issues.

Accommodating Canadian & U.S. Reporting and Disclosure Deadlines
Many of our American clients have unique tax reporting demands because, based on their having certain holdings, they fall under two countries’ tax laws. 1099 tax packages must be mailed by January 31, 2008 in accordance with the Internal Revenue Service (IRS) deadline. However, American clients who received distributions from Canadian Trust Units during 2007 may receive an amended 1099 tax package in March or April, because of different Canadian disclosure deadlines. Alternatively, U.S. Real Estate Investment Trusts (REITs) have an IRS disclosure deadline of January 15, 2008, but it is customary for some REIT issuers to file this information late. With these two factors combined, we recommend American clients wait for any possible amendments to the 1099s before filing.

For American Clients
(or with W-9)

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The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This information is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. This information is not intended as nor does it constitute tax or legal advice. Clients should consult their own accountant or other professional advisor for more detailed tax related information. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member CIPF. ®Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2008. All rights reserved.

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