Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 222

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 3
Chunk 222
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 efforts were made to determine, and use, arm’s length transfer prices. Generally, reasonable efforts in this regard are only

considered to be made if contemporaneous documentation has been prepared in respect of such transactions or arrangements that support the transfer pricing methodology.

For Canadian tax purposes, the general tax risks described above are equally relevant to Preferred Unitholders in respect of their Preferred Units.

The IRS or the CRA may not agree with certain assumptions and conventions that BEP uses in order to comply with applicable U. S. and Canadian federal income tax laws or that BEP uses to report income, gain, loss, deduction and credit to LP unitholders.

BEP will apply certain assumptions and conventions in order to comply with applicable tax laws and to report income, gain, deduction, loss, and credit to an LP unitholder in a manner that reflects such LP unitholder’s beneficial ownership of partnership items, taking into account variation in ownership interests during each taxable year because of trading activity. However, these assumptions and conventions may not be in compliance with all aspects of the applicable tax requirements. A successful IRS or CRA challenge to such assumptions or conventions could adversely affect the amount of tax benefits available to LP unitholders and could require that items of income, gain, deduction, loss, or credit be adjusted, reallocated or disallowed in a manner that adversely affects LP unitholders. See Item 10. E “ Taxation”.

United States

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

The value of LP units to LP unitholders will depend in part on the treatment of BEP and BRELP as partnerships for U. S. federal income tax purposes. However, in order for BEP to be treated as a partnership for U. S. federal income tax purposes, under present law, 90% or more of BEP’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 the partnership 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 Managing General Partner intends to manage BEP’s affairs so that BEP 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