Post by
CanSiamCyp on Mar 03, 2021 8:06pm
A tax bill for the spin-off event....
For those who held units of BEP.UN and/or BIP.UN in a non-registered account at the time of the BEPC and BIPC spin-offs, respectively, there is going to be a bit of a disappointment. While Brookfield's communications clearly stated that each spin-off would be a non-taxable event for a resident of Canada, I can see from the T5013 templates that the companies recently filed with CDS (and at the corresponding Excel file [2020 worksheet/summary] on the BEP.UN website) that this is not true. For both BEP.UN and BIP.UN, there is a 5th Special (non-cash) Distribution recorded at the time of the spin-off. The additional tax bill occurs because the spin-off distribution is not comprised solely of Return of Capital, but included (in the case of BEP.UN) 18% taxable components. Shocking! Or not!