U.S. Tax Information – Qualifying Dividend

Nature of Brookfield Dividends
Brookfield Asset Management Inc. is a “qualified foreign corporation” for U.S. federal income tax purposes and its dividends are therefore generally eligible for “qualified dividend” treatment. Whether dividends paid by Brookfield Asset Management Inc. 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 Asset Management Inc. shares on which such dividends are received. U.S. shareholders are advised to consult their own tax advisors concerning the treatment of dividends paid by Brookfield Asset Management Inc.

Tax Reporting
Dividends paid by Brookfield Asset Management Inc. are reported annually on Form 1099 which is distributed to shareholders in February.

Withholding Tax on Dividends

Under Canadian domestic law, dividends paid by Brookfield Asset Management Inc. to a non-resident shareholder are subject to 25% withholding tax. Generally, the Canada – U.S. Income Tax Treaty will reduce the rate of dividend withholding tax from 25% down to 15% for a resident of the United States. Where the U.S. resident owns the shares of Brookfield Asset Management Inc. in a 401K or similar plan, the Canada – U.S. Income Tax Treaty will reduce the rate of dividend withholding tax to nil.

June 2016 Special Dividend
On June 20, 2016, Brookfield Asset Management Inc. (BAM) paid a special in-kind dividend of limited partnership units of Brookfield Business Partners L.P (BBU) to its common shareholders.

The amount of the taxable dividend for U.S. recipients is equal to the fair market value of the units that were received on that date (before the application of withholding tax), USD $0.4277 for every BAM share plus any cash received in lieu of fractional units.

The USD $0.4277 amount was determined by multiplying (i) the weighted average trading price of the BBU units on the New York Stock Exchange for the five trading days commencing on June 20, 2016 (a commonly used method) of USD $21.3873 per unit by (ii) the number of BBU units received for each BAM share, 0.02 (for example, each BAM common shareholder received one BBU unit for every 50 common shares held of BAM).

As noted above, BAM’s dividends are generally eligible for qualified dividend treatment subject to the shareholder’s specific circumstances.

April 2013 Special Dividend
On April 15, 2013, Brookfield Asset Management Inc. paid a special in-kind dividend of limited partnership units of Brookfield Property Partners L.P to its common shareholders. The amount of the taxable dividend for U.S. recipients is equal to the fair market value of the units that were received on that date. As noted above, Brookfield Asset Management Inc.’s dividends are generally eligible for qualified dividend treatment subject to the shareholder’s specific circumstances.  U.S. tax rules do not specify the method to determine fair market value of the property however a commonly used method is the weighted average trading price of the units on the New York Stock Exchange for the five trading days commencing on April 15, 2013 which was USD 21.8271 per unit.  

January 2008 Special Dividend
On January 31, 2008, Brookfield Asset Management Inc. paid a special in-kind dividend of limited partnership units of Brookfield Infrastructure Partners L.P to its common shareholders. The amount of the taxable dividend for U.S. recipients is equal to the fair market value of the units that were received on that date. As noted above, Brookfield Asset Management Inc.’s dividends are generally eligible for qualified dividend treatment subject to the shareholder’s specific circumstances. U.S. tax rules do not specify the method to determine fair market value of the property however a commonly used method is the weighted average trading price of the units on the New York Stock Exchange for the five trading days commencing on January 31, 2008 which was USD 20.556 per unit.


 

Canadian Tax Information – Eligible Dividend

Nature of Brookfield Dividends
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 Asset Management Inc. to Canadian residents on our common and preferred shares after December 31, 2005 are designated as “eligible dividends.” Unless stated otherwise, all dividends (and deemed dividends) are designated as “eligible dividends” for the purposes of these rules.

Tax Reporting
Dividends paid by Brookfield Asset Management Inc. are reported annually on Form T5 which is distributed to shareholders in February.

June 2016 Special Dividend

On June 20, 2016, Brookfield Asset Management Inc. (BAM) paid a special in-kind dividend of limited partnership units of Brookfield Business Partners L.P (BBU) to its shareholders.

The amount of the taxable eligible dividend for Canadian recipients is equal to the fair market value of the units that were received on that date, CAD $0.5432 for every BAM shares plus any cash received in lieu of fractional units.

The CAD $0.5432 amount was determined by multiplying (i) the weighted average trading price of the BBU units on the Toronto Stock Exchange for the five trading days commencing on June 20, 2016 (a commonly used method) of CAD $27.1594 per unit by (ii) the number of BBU units received for each BAM shares, 0.02 (for example, each BAM common shareholder received one BBU unit for every 50 common shares held of BAM).


April 2013 Special Dividend
On April 15, 2013, Brookfield Asset Management Inc. paid a special in-kind dividend of limited partnership units of Brookfield Property Partners L.P to its common shareholders. The amount of the taxable eligible dividend for Canadian recipients is equal to the fair market value of the units that were received on that date. Canadian tax rules do not specify the method to determine fair market value of the property however a commonly used method is the weighted average trading price of the units on the Toronto Stock Exchange for the five trading days commencing on April 15, 2013 which was CAD 22.3805 per unit.

January 2008 Special Dividend
On January 31, 2008, Brookfield Asset Management Inc. paid a special in-kind dividend of limited partnership units of Brookfield Infrastructure Partners L.P to its common shareholders. The amount of the taxable eligible dividend for Canadian recipients is equal to the fair market value of the units that were received on that date. Canadian tax rules do not specify the method to determine fair market value of the property however a commonly used method is the weighted average trading price of the units on the Toronto Stock Exchange for the five trading days commencing on January 31, 2008 which was CAD 20.5935 per unit.

For inquiries regarding share transfers, changes of address, dividend cheques, dividend reinvestment plan purchases and lost share certificates, please contact Brookfield's transfer agent:

Transfer Agent

CST Trust Company
P.O. Box 700, Station B
Montreal, QC H3B 3K3

Tel: 416-682-3860
Toll-Free: 1-800-387-0825
Fax: 1-888-249-6189

Email: inquiries@canstockta.com
Website: www.canstockta.com

Investor Enquiries

Brookfield Asset Management Inc.:
For all investor enquiries:
1-866-989-0311 (North America)
1-416-363-9491 (International)
enquiries@brookfield.com

Brookfield Property Partners LP:
For all investor enquiries:
Matthew Cherry: 212-417-7488
bpy.enquiries@brookfield.com

Brookfield Infrastructure Partners LP:
For all investor enquiries:
Melissa Low: 1-416-956-5239
bip.enquiries@brookfield.com

Brookfield Renewable Partners LP:
For all investor enquiries:
Zev Korman: 1-416-359-1955
enquiries@brookfieldrenewable.com

Brookfield Business Partners L.P:
For all investor enquiries:
Jennifer Ritchie: 1-416-956-5230
bbu.enquiries@brookfield.com