January 27, 2012
Taxability of 2011 SAFE Distributions & SABT Benefits
We once again are pleased to report that beneficiaries (shareholders) will NOT have to pay federal income tax on distributions received from the Shee Atiká Fund Endowment (SAFE) in 2011. You will not be receiving any forms from us and there is nothing to report on your 2011 federal income tax return. SAFE has more than enough accumulated taxable income to cover the amount distributed, making distributions non-taxable at the individual level.
Shee Atika Benefits Trust (SABT) scholarship and funeral benefits are non-taxable based on the information we have presently. You will not be receiving any form from us and there is nothing to report on your 2011 federal income tax return, unless Shee Atiká advises you otherwise.
Please feel free to call or email me or our Controller, Ptarmica McConnell with any questions (or have your tax preparer call). The tax issues regarding whether distributions are taxable relate to the Section 646 election for ANCSA settlement trusts that we made several years ago for both SAFE and SABT. This mechanism is too complex to go into here, but we would be happy to provide additional information upon request.
Sincerely,
Dr. Kenneth Cameron
President & CEO and
Chairman of the Board