Is Enbridge a master limited partnership? And how will taxes be handled for U.S. shareholders?

Our Answer

William asked this question on March 6, 2017.

Hi William,

Enbridge is a corporation, and as such we expect to issue 1099 tax forms to our U.S. investors.

With respect to dividends, Canadian withholding taxes are expected to apply to dividends paid to U.S. shareholders. Subject to certain limitations, Canadian tax withheld will be deductible against your U.S. federal income tax liability.

The rules governing the foreign tax credit are complex and involve the application of rules that depend upon a U.S. holder’s particular circumstances. Accordingly, U.S. holders should to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

Additional information is included in the final F-4 Proxy Circular/Prospectus found under “Certain U.S. Federal Income Tax Consequences” at this link.