Brookfield Asset Management intends to distribute an insurance-company subsidiary as a taxable dividend

Brookfield Asset Management is proposing to transfer subsidiaries, carrying on a Canadian, U.S. and international insurance business, to a newly-incorporated Ontario subsidiary (Trisura Group), and then distribute its shares of Trisura Group to the Brookfield shareholders as a taxable dividend. The Circular indicates that for non-Canadian beneficial shareholders, the Part XIII tax withholding tax obligations “will be satisfied in the ordinary course through arrangements with their broker or other intermediary.” This dividend is expected to occur as a tax-free distribution for Code purposes.

Neal Armstrong. Summary of preliminary prospectus of Trisura Group under Spin-offs & Distributions – Taxable dividends-in-kind - Subsidiary distribution.