Questions about dividends and taxes

[bob2007]

Hi everyone, I'm relatively new to investing, just bought RBC a few weeks ago.

Currently, I'm lookin at this company Enerplus Resources Fund, tempted by its dividend of around 12%.

However, going through the site, it seems like theres huge taxes on dividends, I'm not sure if my interpretation is correct, if you could take a look.

"2004 estimated taxable income (other income) for Canadian residents is 85%" - does that mean I have to pay 85% of the dividend in taxes? Doesn't seem to make any sense.
http://www.enerplus.com/investor/tax_information.shtml

Also, http://www.enerplus.com/investor/doc...er-amended.pdf

It seems to say they paid out $4 something, but the actual return to investors is $0.75.

I'm rather confused, it seems like the 12% dividend isn't 12% or anywhere near it?

Thanks,
Jimmy