Company: BBU
Filing Date: 2025-02-28
Form Type: F-3
Source: 0001104659-25-019207
Chunk: 60

Company: Brookfield Business Partners L.P.
Filing Date: 2025-02-28
Form: F-3
Chunk 60
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 business carried on in Canada (a “

#### Non-Resident Holder
”). Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an insurer that carries on an insurance business in Canada and elsewhere.

#### Exchange of Exchangeable Shares
A Non-Resident Holder who disposes of, or who is deemed to dispose of, an exchangeable shares to BBUC (including, in general, on an exchange at the request of the Non-Resident Holder), will be deemed to receive a dividend equal to the amount by which the amount paid by BBUC exceeds the “paid-up capital” (as determined for purposes of the Tax Act) in respect of those shares. Such deemed dividend will be subject to Canadian withholding tax at a rate of 25%, subject to any reduction in the rate of withholding to which the Non-Resident Holder is entitled under any applicable income tax convention between Canada and the country in which the Non-Resident Holder is resident.

The Non-Resident Holder will also realize a capital gain (or capital loss) in the taxation year of the disposition equal to the amount by which the Non-Resident Holder’s proceeds of disposition for such share, net of any reasonable costs of disposition in respect thereof, exceed (or are exceeded by) the adjusted cost base to the Non-Resident Holder of such share immediately before the disposition, and for such purposes the amount of any deemed dividend arising on the disposition of an exchangeable share to BBUC will not be included in computing the Non-Resident Holder’s proceeds of disposition for purposes of computing the capital gain or capital loss arising on the disposition of such share. However, a Non-Resident Holder will not be subject to tax under the Tax Act on such capital gain (or capital loss) unless the exchangeable shares are “taxable Canadian property” of the Non-Resident Holder for purposes of the Tax Act at the time of the disposition or deemed disposition and the Non-Resident Holder is not entitled to relief under an applicable income tax convention between Canada and the country in which the Non-Resident Holder is resident.

Generally, the exchangeable shares will not constitute “taxable Canadian property” of a Non-Resident Holder at a particular time provided that the exchangeable shares are listed on a “designated stock exchange” as defined in the Tax Act (which currently includes TSX and NYSE) unless, at any particular time during the 60-month period that ends at that time