Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 63

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 10
Chunk 63
---
 on the tax deemed deferred from prior years.

To mitigate the foregoing adverse tax consequences of owning an interest in a PFIC, certain elections may be available to U. S. Holders. If you were to make an election to treat your share of our partnership’s interest in a PFIC as a “qualified electing fund” (“ QEF Election”) for the first year you were treated as holding such interest, then in lieu of the tax consequences described in the paragraph immediately above, you would be required to include in income each year a portion of the ordinary earnings and net capital gains of the PFIC, even if not distributed to our partnership or to you. A QEF Election must be made by you on an entity-by-entity basis. To make a QEF Election, you must, among other things, (i) obtain a PFIC annual information statement (through an intermediary statement supplied by our partnership) and (ii) prepare and submit IRS Form 8621 with your annual income tax return. To the extent reasonably practicable, we intend to timely provide U. S. Holders with the information necessary to make a QEF Election with respect to any entity that our General Partner believes is a PFIC respect to U. S. Holders. Any such election should be made for the first year our partnership holds an interest in such entity or for the first year in which you hold our units, if later. Non-corporate U. S. Holders making QEF Elections are also subject to special rules for determining their taxable income and basis in our units for purposes of the 3.8% Medicare tax (as described above under “ - Medicare Tax”).

Brookfield Infrastructure 339

In the case of a PFIC that is a publicly traded foreign company, and in lieu of making a QEF Election, an election may be made to “mark to market” the stock of such publicly traded foreign company on an annual basis (a “ Mark-to-Market Election”). Pursuant to such an election, you would include in each year as ordinary income the excess, if any, of the fair market value of such stock over its adjusted basis at the end of the taxable year. However, no assurance can be provided that any of our existing or future Holding Entities or operating entities classified as a PFIC will be publicly traded. Thus, the Mark-to-Market Election may not be available to a U. S. Holder with respect to its indirect ownership interest through our partnership in any PFIC.

Subject to certain exceptions,