U.S. Unitholders please click here

Former Sound Unitholders please click here  

Canadian Unitholders Income Tax Information
The following information is intended to assist individual Canadian Unitholders of Advantage Energy Income Fund ("Advantage" or the "Fund") in the preparation of their 2007 T1 Income Tax Return.

Cash distributions are comprised of a return of capital portion (non-taxable) and other income (taxable). The following schedules include supplementary information on the taxable portion of cash distributions shown on a per Trust Unit basis.

Cash distributions in 2007 are 100% taxable.

2007 T3 Information

Record Date	Payment Date	Distribution	Taxable Amount	Return of Capital Amount
December 31	January 15/08	$0.12	$0.12	$0.00
November 30	December 17	$0.15	$0.15	$0.00
October 31	November 15	$0.15	$0.15	$0.00
September 28	October 15	$0.15	$0.15	$0.00
August 31	September 17	$0.15	$0.15	$0.00
July 31	August 15	$0.15	$0.15	$0.00
June 29	July 16	$0.15	$0.15	$0.00
May 31	June 15	$0.15	$0.15	$0.00
April 30	May 15	$0.15	$0.15	$0.00
March 30	April 16	$0.15	$0.15	$0.00
February 28	March 15	$0.15	$0.15	$0.00
January 31	February 15	$0.15	$0.15	$0.00
Total		$1.77	$1.77	$0.00

2006 T3 Information

Record Date	Payment Date	Distribution	Taxable Amount	Return of Capital Amount
December 29	January 15/07	$ 0.18	$ 0.090	$ 0.090
November 30	December 15	$ 0.18	$ 0.090	$ 0.090
October 31	November 15	$ 0.20	$ 0.100	$ 0.100
September 29	October 16	$ 0.20	$ 0.100	$ 0.100
August 31	September 15	$ 0.20	$ 0.100	$ 0.100
July 31	August 15	$ 0.20	$ 0.100	$ 0.100
June 30	July 17	$ 0.25	$ 0.125	$ 0.125
May 31	June 15	$ 0.25	$ 0.125	$ 0.125
April 28	May 15	$ 0.25	$ 0.125	$ 0.125
March 31	April 17	$ 0.25	$ 0.125	$ 0.125
February 28	March 15	$ 0.25	$ 0.125	$ 0.125
January 31	February 15	$ 0.25	$ 0.125	$ 0.125
Total		$ 2.66	$ 1.33	$ 1.33

2005 T3 Information

Record Date	Payment Date	Distribution	Taxable Amount	Return of Capital Amount
January 31	February 15	$ 0.28	$ 0.112	$ 0.168
February 28	March 15	$ 0.28	$ 0.112	$ 0.168
March 31	April 15	$ 0.28	$ 0.112	$ 0.168
April 29	May 16	$ 0.28	$ 0.112	$ 0.168
May 31	June 15	$ 0.25	$ 0.100	$ 0.150
June 30	July 15	$ 0.25	$ 0.100	$ 0.150
July 29	August 15	$ 0.25	$ 0.100	$ 0.150
August 31	September 15	$ 0.25	$ 0.100	$ 0.150
September 30	October 17	$ 0.25	$ 0.100	$ 0.150
October 31	November 15	$ 0.25	$ 0.100	$ 0.150
November 30	December 15	$ 0.25	$ 0.100	$ 0.150
December 30	January 16/06	$ 0.25	$ 0.100	$ 0.150
Total		$ 3.12	$ 1.248	$ 1.872

2004 T3 Information

Record Date	Payment Date	Distribution	Taxable Amount	Return of Capital Amount
January 30	February 17	$ 0.23	$0.0880	$0.1420
February 27	March 15	$ 0.23	$0.0880	$0.1420
March 31	April 15	$ 0.23	$0.0880	$0.1420
April 30	May 17	$ 0.23	$0.0880	$0.1420
May 31	June 15	$ 0.23	$0.0880	$0.1420
June 30	July 15	$ 0.23	$0.0880	$0.1420
July 30	August 16	$ 0.23	$0.0880	$0.1420
August 31	September 15	$ 0.23	$0.0880	$0.1420
September 30	October 15	$ 0.23	$0.0880	$0.1420
October 29	November 15	$ 0.25	$0.0960	$0.1540
November 30	December 15	$ 0.25	$0.0960	$0.1540
December 31	January 17/05	$ 0.25	$0.0960	$0.1540
Total		$ 2.82	$1.0800	$1.7400

2003 T3 Information

Record Date	Payment Date	Distribution	Taxable Amount	Return of Capital Amount
January 31	February 18	$ 0.18	$0.0720	$0.1080
February 28	March 17	$ 0.23	$0.0920	$0.1380
March 31	April 15	$ 0.23	$0.0920	$0.1380
April 30	May 15	$ 0.23	$0.0920	$0.1380
May 30	June 16	$ 0.23	$0.0920	$0.1380
June 30	July 15	$ 0.23	$0.0920	$0.1380
July 31	August 15	$ 0.23	$0.0920	$0.1380
August 29	September 15	$ 0.23	$0.0920	$0.1380
September 30	October 15	$ 0.23	$0.0920	$0.1380
October 31	November 17	$ 0.23	$0.0920	$0.1380
November 28	December 15	$ 0.23	$0.0920	$0.1380
December 31	January 15/04	$ 0.23	$0.0920	$0.1380
Total		$ 2.71	$1.0840	$1.6260

Trust Units held within an RRSP, RRIF, or DPSP
No amounts are required to be reported on the 2007 T1 Income Tax Return where Trust Units are held within an RRSP, RRIF or DPSP.

Trust Units held outside of an RRSP, RRIF or DPSP
Unitholders who hold their Trust Units outside of an RRSP, RRIF or DPSP through a broker or other intermediary and who have received cash distributions for the 2007 calendar year, will receive a "T3 Supplementary" slip directly from their broker or intermediary, not from the transfer agent of the Fund, Computershare Investor Services (the "Transfer Agent") or the Fund.

Registered Unitholders of Trust Units who have received cash distributions for the 2007 calendar year from the Transfer Agent (and not from a broker or intermediary), will receive a "T3 Supplementary" slip directly from the Transfer Agent.

Under Paragraph 12(1)(m) of the Income Tax Act, taxable amounts allocated to the Unitholders must be reported by the Unitholders in their 2007 Income Tax Return. Accordingly, the taxable amount of cash distributions received and receivable for the period from January 1, 2007 up to and including December 31, 2007 are included in your "T3 Supplementary" slip. The amount reported in Box (26) on the T3 slip should be reported on your T1 Income Tax Return as "Other Income".The deadline for mailing all T3 Supplementary Information slips as required by Canada Revenue Agency is March 31, 2008.

Adjusted Cost Base for Capital Gains
Holders of Trust Units are required to reduce the Adjusted Cost Base of their Trust Units by an amount equal to the cumulative cash received and receivable from cash distributions minus cumulative taxable amounts reported as "Other Income" on their slips (if any). If the amount of the reduction exceeds the Adjusted Cost Base, the excess should be reported as a capital gain and the Adjusted Cost Base will then be reset to zero.

The Adjusted Cost Base is used in calculating capital gains or losses on the disposition of the Trust Units if the Trust Units are held as a capital property by the owner.