Company: BIPC
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014377
Chunk: 321

Company: Brookfield Infrastructure Corp
Filing Date: 2025-03-24
Form: 20-F
Item: Item 10
Chunk 321
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 interests in our company and exercise no control over our company’s corporate affairs, you may be entitled to sale or exchange treatment on a redemption or exchange of the exchangeable shares if you experience a reduction in your equity interest in our company (taking into account any constructively owned equity interests) as a result of the redemption or exchange. If you meet none of the alternative tests of Section 302(b) of the U. S. Internal Revenue Code, the redemption or exchange will be treated as a distribution subject to the rules described above under “ - Taxation of Distributions”. Because the determination as to whether any of the alternative tests of Section 302(b) of the U. S. Internal Revenue Code is satisfied with respect to any particular U. S. Holder of exchangeable shares will depend upon the facts and circumstances as of the time the determination is made, each U. S. Holder should consult its own tax adviser regarding the tax treatment of a redemption or exchange.

In the event that a redemption or exchange is properly treated as a distribution, the amount of the distribution will be equal to the amount of cash and the fair market value of property received (such as units) without any offset for a U. S. Holder’s tax basis in the exchangeable shares. In such case, any tax basis in the redeemed or exchanged exchangeable shares would be transferred to a U. S. Holder’s remaining exchangeable shares.

Exercise of the Partnership Call Right. The partnership has the right to acquire exchangeable shares directly from a shareholder under certain circumstances in exchange for units or cash (the “partnership call right”). For the U. S. federal income tax consequences to a U. S. Holder of the exchange of exchangeable shares for cash pursuant to the exercise of the partnership call right, see the discussion above under “ - Sale, Redemption, Exchange, or Other Taxable Disposition of Exchangeable Shares”.

The U. S. federal income tax consequences to a U. S. Holder of the exchange of exchangeable shares for units pursuant to the exercise of the partnership call right will depend in part on whether the exchange qualifies as tax-free under Section 721(a) of the U. S. Internal Revenue Code. For the exchange to so qualify, the partnership (i) must be classified as a partnership and not as an association or publicly traded partnership taxable as a corporation for U. S. federal income tax purposes and (ii) must not be treated as an investment company for purposes of Section 721(b) of the U. S.