macquarie global infrastructure total return fund annual report 2012

2. Income Taxes and Tax
Basis Information
The Fund complies with the
requirements under Subchapter M of
the Internal Revenue Code of 1986,
as amended, applicable to regulated
investment companies ("RICs") and
intends to distribute substantially all of
its net taxable income and net capital
gains, if any, each year. The Fund is
not subject to income taxes to the
extent such distributions are made.
As of and during the fiscal year
ended November 30, 2012, the
Fund did not have a liability for any
unrecognized tax benefits in the
accompanying financial statements.
The Income Tax Statement requires
management of the Fund to analyze
all open tax years, fiscal years
2006-2012 as defined by IRS
statute of limitations for all major
jurisdictions, including federal
tax authorities and certain state
tax authorities. The Fund has no
examination in progress and is not
aware of any tax positions for which
it is reasonably possible that the
total amounts of unrecognized tax
benefits will significantly change in
the next twelve months.
Classification of Distributions:
Net investment income/loss and
net realized gain/loss may differ
for financial statements and
tax purposes. The character of
distributions made during the year
from net investment income or net
realized gains may differ from its
ultimate characterization for federal
income tax purposes.
The tax character of the distributions paid by the Fund during the years
ended November 30, 2012 and 2011, respectively, were as follows:
Distributions paid from:
2012 2011
Ordinary income $16,624,391 $12,468,293
Total $16,624,391 $12,468,293
Tax components of distributable
earnings are determined in
accordance with income tax
regulations which may differ from
composition of net assets reported
under GAAP. Accordingly, for the
year ended November 30, 2012, the
effects of certain differences were
reclassified. The Fund increased its
accumulated net investment income
by $1,320,612, decreased paid in
capital by $5,151, and increased
accumulated net realized loss by
$1,315,461. These differences
were primarily due to the differing
tax treatment of foreign currency,
investments in partnerships,
investments in PFICs, and certain
other investments. Net assets of
the portfolio were unaffected by the
reclassifications and the calculation
of net investment income per share
in the Financial Highlights excludes
these adjustments.
At November 30, 2012, the Fund
had available for tax purposes
unused capital loss carryover of
$46,040,770, expiring November
30, 2017. During the year ended
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