Tax Information

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.
 
 

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.