Distributions we pay to U.S. shareholders will be treated as a dividend for U.S. federal income tax purposes to the extent the distributions come from earnings and profits (“E&P”) and as a nondividend distribution or a return of capital (“ROC”) to the extent the distributions exceed E&P.
Distributions to a non-U.S. shareholder will not be subject to U.S. federal income tax or withholding tax if the non-U.S. shareholder is not engaged in a U.S. trade or business.
For more detailed tax commentary, please refer to the F-1 prospectus for Teekay Tankers Ltd.
The chart below describes the total distribution made by Teekay Tankers Ltd. in 2017 and the reporting of such distributions on United States Internal Revenue Service (“IRS”) Form 1099.
Please note that the determination of whether these distributions constitute a dividend from E&P or a ROC is not made for U.S. federal income tax purposes until the end of the fiscal year. If you are a U.S. shareholder and you received an IRS Form 1099 that does not set forth such amounts, you should contact your broker or tax advisor.
Holders are directed to consult their own tax advisors to determine the appropriate tax treatment with respect to the distributions.
|Record Date||Total Distribution||Amount Reported as a Qualified Dividend in Item 1 (b) of Form 1099||% Reported as a Qualified Dividend in Item 1 (b) of Form 1099||Amount Reported as a Nondividend distribution in Item 3 of Form 1099||% Reported as a Nondividend Distribution in Item 3 of Form 1099|
This chart and related comments are intended as general information only and do not constitute tax advice. This information was not written or intended to be used, and it cannot be used, by any person as a basis for avoiding federal tax penalties that may be imposed on that person. Shareholders should consult their own tax advisors with respect to the specific tax consequences to them.
Teekay Tankers Ltd. makes no warranty either expressed or implied regarding any tax issues of its shareholders.
IRC §6045B Reporting
Information for former shareholders of Tanker Investments Ltd (TIL)
For more information regarding the merger of TIL with Royal 2017 Ltd, a wholly owned subsidiary of Teekay Tankers Ltd (TNK) during 2017, including required tax reporting to shareholders by the company, please refer to [attached Form 8937].