Ounalashka Corp - The Eider Pointer Newsletter_Feb2019_11 web - Page 5

OC is proud to support local students at Eagle’s View Elementary Achigaalux, and to contribute to ensuring Unangan culture thrives within the next generation of shareholders and descendants. Aang Unangan, Since the shareholders of the Ounalashka Corporation voted to create and fund the Ounalashka Settlement Trust (OST) things have quickly developed, and because of the 2017 Tax Act, making distributions to the Trust beneficiaries has become feasible much earlier than planned. Let’s look back at how the last couple of years have gone and how we’ve arrived where we are today. The OST’s formation was approved by OC shareholders at the June 2017 shareholders’ annual meeting. A Settlement Trust must be sponsored by an ANSCA Corporation (like OC) and enjoys favorable tax rates for its earnings. Distributions to the Trust’s beneficiaries are not taxable. The 2017 Tax Act added the advantage of OC’s contributions being deductible to the corporation. The Trust is a separate, but related legal entity from OC. The Trust is governed by nine Trustees – who are also OC’s Board of Directors. These changes in tax law have allowed OC to make contributions of $20.7 million over the last two years. These contributions have been used to build the Trust balance, pay taxes on Trust contributions, and make beneficiary distributions. Beginning in April 2018, the Trust began making distributions to beneficiaries: $10/unit – April; $14/unit – July; $18/unit – October; and $36/unit – January 2019. These distributions are not taxable income to you. The OST will not issue a 1099DIV and these amounts do not need to be reported on your tax return. Trustees are taking advantage of current tax laws to build Trust assets and provide beneficiaries with distributions. It is important to emphasize that distributions are not always guaranteed and are dependent on OC’s contributions and OST investment earnings. Trust assets are invested in a diversified securities portfolio and its value will fluctuate as markets rise and fall. Alaska Permanent Capital Management is the Trust’s investment advisor and has advised current holdings to provide investment income and value growth over the long term. OST Trustees dedicate their time to maintaining the Trust’s investment policy in order to maximize returns, protect Trust assets, and make consistent distributions to its beneficiaries. Because the legal and tax environments of ANCSA Settlement Trusts are still developing, there might be additional benefits that Trusts such as the OST can offer to its beneficiaries in the future. The OST trustees meet regularly with its management and professional consultants in order to ensure compliance with the Trust’s policies and regulatory requirements. We are here to protect your interests, and those of future generations. Qagaasakung, Vincent M. Tutiakoff, Sr. OC’S FEBRUARY 2019 NEWSLETTER 4