Company: BBU
Filing Date: 2025-03-10
Form Type: 424B3
Source: 0001104659-25-022184
Chunk: 55

Company: Brookfield Business Partners L.P.
Filing Date: 2025-03-10
Form: 424B3
Chunk 55
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 deal at arm’s length for purposes of the Tax Act, or (iii) partnerships or trusts of which the particular corporation, or persons with whom it does not deal at arm’s length for purposes of the Tax Act, is a member or beneficiary.

Resident Holders should be aware that exchanges at the request of holders of exchangeable shares may impact the percentage of exchangeable shares held by such Resident Holders.

A Resident Holder which is a “private corporation” (as defined in the Tax Act) or any other corporation controlled directly or indirectly by or for the benefit of an individual (other than a trust) or a related group of individuals (other than trusts) may be liable to pay a refundable tax under Part IV of the Tax Act, generally imposed at the rate of 38 1/3%, on taxable dividends (including deemed dividends) received on the exchangeable shares, to the extent that such dividends are deductible in computing its taxable income.

Taxable dividends (including deemed dividends) paid to a Resident Holder that is an individual (other than certain trusts) may give rise to a liability for alternative minimum tax. Such Resident Holder should consult their own tax advisors.

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 also realize a capital gain (or capital loss) in the taxation year of the disposition equal to the amount by which the 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 Resident Holder of such share immediately before the disposition.

Subject to Proposed Amendments with respect to the capital gains and losses (discussed below), one-half of a capital gain realized by a Resident Holder in a taxation year must be included in income as a taxable capital gain and one-half of a capital loss realized by a Resident Holder in a taxation year generally must be deducted as an “allowable capital loss” against taxable capital gains realized in the year. Allowable capital losses in excess of taxable capital gains realized in a taxation year may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year against net taxable capital gains realized in such years in accordance with the provisions of the Tax Act.

Proposed Amendments with respect to capital gains and losses, would, if enacted, generally have the effect of increasing the capital gains inclusion rate (i