Tax Re-Filing - General Update - August 2002

The majority of the initial round of tax re-filing has been completed by CCRA. Their latest figures indicate over 2,100 re-assessment (refund) cheques have been mailed to investors. PricewaterhouseCoopers are working on a reconciliation to ensure every lender's request has been completed by CCRA.

We have now completed the second phase of the re-filing process. We mailed each eligible investor, a package of election forms and information containing:

- Summary of non-registered investments eligible for the re-filing process
- Summary of elections made to date
- Additional interest amounts eligible for Return of Capital treatment
- Capital Loss calculation and application forms as deemed by CCRA
- ABIL calculation and application forms as deemed by CCRA
- Individual discrepancies raised in initial round mailing explained
- General information

If your investment is registered (RRSP), you are not eligible for this re-filing process.

If your investment is in ABC Boat Charters, Castlegar, Discovery Ridge, Homer Street, Leewood Village, Petrochemical, Ravenswood, Shopkeepers or Wang Building, you did not receive a loss election form for your investment. The return on these projects is close to, if not over 100 cents on the dollar, and there may be no loss incurred.

If you did not receive your package, please contact Patty Cotton, at (604) 806-7780 ext 4146, and request a duplicate package.

If the deadline date on your mailing has passed, and you did not submit your election forms in time, we advise that it's not too late to take part in the process. We will accept any `late' submissions over the next several weeks.

Our next task is to compile all responses received, and submit them to CCRA for processing. We expect to make our next submission to CCRA by September 2002.

To date, we have made 3 submissions of lender's losses to CCRA. All correctly completed forms received to March 15, 2002 (284 lenders) have been forwarded to CCRA for processing.

We will update these figures and any other information as the process continues.

PricewaterhouseCoopers Inc.
Judicial Trustee


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