Tax Information

What is the tax nature of the distributions paid by Brookfield Business Corporation?
Brookfield Business Corporation expects to pay eligible dividends to its shareholders.

I am a Canadian resident. Is the dividend I am paid from Brookfield Business Corporation subject to withholding tax?
Dividends paid from Brookfield Business Corporation to Canadian resident shareholders are not subject to withholding tax.

Is the dividend I am paid from Brookfield Business Corporation considered an “eligible dividend”?
For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation, all dividends (and deemed dividends) paid by Brookfield Business Corporation to Canadian residents and unless stated otherwise, are designated as "eligible dividends".

Is Brookfield Business Corporation eligible for Tax-Deferred Plans?
Brookfield Business Corporation is a qualified investment for registered retirement savings plans, deferred profit-sharing plans, registered retirement income funds, registered education savings plans, registered disability savings plans and tax-free savings accounts.

What Tax Form will I receive as a Canadian shareholder?
Form T5 – Statement of Investment Income will be issued to Canadian resident shareholders. Form T5 contains information about investment income from Brookfield Business Corporation.

Who will send my Tax Form (T5)?
Unregistered Canadian resident shareholders (i.e., those holding their shares in street name with their brokerage) who own their shares in a non tax-deferred account should receive a T5 from their Canadian broker. If you are a beneficial Canadian resident shareholder and did not receive your Form T5, please contact the brokerage firm with whom your shares are held.

Registered Canadian resident shareholders will receive a T5 directly from our transfer agent TSX Trust Company. If you are a registered Canadian resident shareholder and did not receive your Form T5, please contact TSX Trust Company toll-free at 1-877-715-0498 or direct dial at 1-416-682-3860.

When will I (non-registered shareholder) receive my Tax Form (T5)?
Typically, brokers will prepare and distribute the Form T5 by the end of February. If you have any questions about Form T5 you should contact your broker.

Why does the $CAD cash I received not equal the amount reflected on my T5?
The dividends you receive adjusted for foreign exchange rates should equal the investment income reported on Form T5. There may be minor differences due to exchange rates.

Is Brookfield Business Corporation a Specified Foreign Property?
Brookfield Business Corporation is not a Specified Foreign Property and therefore does not need to be reported on Form T1135 Foreign Income Verification Statement.

What is the Adjusted Cost Base (“ACB”) of my shares?
In general, a shareholder's tax cost or ACB of their Brookfield Business Corporation shares should equal the amount paid to acquire the shares.

These questions and answers are for general information purposes only and are not legal or tax advice. Brookfield does not provide legal or tax advice. Please consult your own tax adviser regarding your personal tax circumstances.

What is the tax nature of the distributions paid by Brookfield Business Corporation?
Dividends paid by Brookfield Business Corporation are expected to be eligible for “qualified dividend” treatment, provided that certain requirements are met. Whether dividends paid by Brookfield Business Corporation will in fact be “qualified dividends” to any shareholder will depend on that shareholder’s specific circumstances, including the shareholder’s holding period for the Brookfield Business Corporation shares on which such dividends are received.

Is Brookfield Business Corporation considered a passive foreign investment company ("PFIC")?
Based on the current and anticipated composition of the income, assets and operations of Brookfield Business Corporation and its subsidiaries, Brookfield Business Corporation does not believe that it will be a PFIC for U.S. federal income tax purposes for the current taxable year or for future taxable years. However, the application of the PFIC rules is subject to uncertainty in several respects, and a separate determination must be made after the closing of each taxable year as to whether Brookfield Business Corporation is a PFIC for that year. Changes in the composition of Brookfield Business Corporation income or assets may cause Brookfield Business Corporation to become a PFIC. Accordingly, there can be no assurance that Brookfield Business Corporation will not be a PFIC for any taxable year.

I am a U.S. resident. Is the dividend I am paid from Brookfield Business Corporation subject to withholding tax?
Dividends paid by Brookfield Business Corporation to a U.S. resident shareholder may be subject to Canadian withholding tax. The rate of withholding varies, amongst other factors, depending on the type of ownership account, and whether holders have provided their broker (or Brookfield Business Corporation’s transfer agent in the case of registered shareholders) with the appropriate Canada Revenue Agency (“CRA”) forms (Form NR301, NR302, and NR303). The withholding tax rate can range from nil to 25%.

Additionally, U.S. resident shareholders may be subject to U.S. backup withholding tax on the dividend if a valid Form W-9 is not provided. The U.S. backup withholding tax rate is 24%.

Which U.S. tax form will I receive as a U.S. shareholder?
Dividends paid by Brookfield Business Corporation are reported annually on IRS Form 1099-DIV, which is generally made available to shareholders in February.

These questions and answers are for general information purposes only and are not legal or tax advice. Brookfield does not provide legal or tax advice. Please consult your own tax adviser regarding your personal tax circumstances.