Company: BBU
Filing Date: 2025-02-28
Form Type: F-3
Source: 0001104659-25-019207
Chunk: 56

Company: Brookfield Business Partners L.P.
Filing Date: 2025-02-28
Form: F-3
Chunk 56
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 by such Resident Holder to be capital property in the taxation year in which the election is made and in all subsequent taxation years. Resident Holders whose exchangeable shares might not otherwise be considered to be capital property should consult their own tax advisors concerning this election.

#### Exchange of Exchangeable Shares
A Resident Holder who disposes of, or who is deemed to dispose of, an exchangeable share to BBUC (including, in general, on an exchange at the request of the Resident Holder) will generally 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 such shares. The amount of any deemed dividend arising on the disposition of an exchangeable share to BBUC will not be included in computing the Resident Holder’s proceeds of disposition for purposes of computing the capital gain or capital loss arising on the disposition of such share.

Any dividends deemed to be received by a Resident Holder on the exchange of exchangeable shares to BBUC by such Resident Holder will be included in computing such Resident Holder’s income. Such deemed dividend received by a Resident Holder that is an individual will be included in computing the Resident Holder’s income subject to the gross-up and dividend tax credit rules normally applicable under the Tax Act to taxable dividends received from taxable Canadian corporations. Such deemed dividends will be eligible for the enhanced gross-up and dividend tax credit if BBUC designates the deemed dividends as “eligible dividends”. There may be limitations on BBUC’s ability to designate such deemed dividends as eligible dividends.

Subject to the potential application of subsection 55(2) of the Tax Act, dividends deemed to be received on the exchange of exchangeable shares to BBUC by a Resident Holder that is a corporation (other than a “specified financial institution” for purposes of the Tax Act) will be included in the Resident Holder’s income and will generally be deductible by the Resident Holder in computing its taxable income. In certain circumstances, subsection 55(2) of the Tax Act will treat such deemed dividends received by a Resident Holder that is a corporation as proceeds of disposition or a capital gain. Resident Holders that are corporations should consult their own tax advisors having regard to their own circumstances. In the case of a Resident Holder that is a “specified financial institution”, such deemed dividends will be deductible in computing its taxable income only if either:

(a)

the specified financial institution did not acquire the exchangeable shares in the ordinary course of its business; or

(b)

at the time