Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 69

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 3
Chunk 69
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, including interest deductions, be adjusted, reallocated or disallowed in a manner that adversely affects our unitholders. See Item 10. E, “ Taxation - Certain Material Canadian Federal Income Tax Considerations” and “ Taxation - Certain Material U. S. Federal Income Tax Considerations”.

  48      Brookfield Business Partners  

United States

If our company or the Holding LP were to be treated as a corporation for U. S. federal income tax purposes, the value of our units might be adversely affected.

The value of our units to unitholders will depend in part on the treatment of our company and the Holding LP as partnerships for U. S. federal income tax purposes. However, in order for our company to be treated as a partnership for U. S. federal income tax purposes, 90% or more of our company’s gross income for every taxable year must consist of qualifying income, as defined in Section 7704 of the U. S. Internal Revenue Code, and our company must not be required to register, if it were a U. S. corporation, as an investment company under the Investment Company Act and related rules. Although the BBU General Partner intends to manage our company’s affairs so that our company will not need to be registered as an investment company if it were a U. S. corporation and so that it will meet the 90% test described above in each taxable year, our company may not meet these requirements, or current law may change so as to cause, in either event, our company to be treated as a corporation for U. S. federal income tax purposes. If our company (or the Holding LP) were treated as a corporation for U. S. federal income tax purposes, adverse U. S. federal income tax consequences could result for our unitholders and our company (or the Holding LP, as applicable), as described in greater detail in Item 10. E, “ Taxation - Certain Material U. S. Federal Income Tax Considerations - Partnership Status of Our Company and the Holding LP”.

We may be subject to U. S. backup withholding tax or other U. S. withholding taxes if any unitholder fails to comply with U. S. tax reporting rules or if the IRS or other applicable state or local taxing authority does not accept our withholding methodology, and such excess withholding tax cost will be an expense borne by our company and, therefore, by all of our unitholders on a pro rata basis.

We may become subject to