Company: BIPC
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014377
Chunk: 43

Company: Brookfield Infrastructure Corp
Filing Date: 2025-03-24
Form: 20-F
Item: Item 3
Chunk 43
---
 of exchangeable shares for units may result in the U. S. federal income taxation of any gain realized by a U. S. Holder.

Depending on the facts and circumstances, a U. S. Holder’s exchange of exchangeable shares for units may result in the U. S. federal income taxation of any gain realized by such U. S. Holder. In general, a U. S. Holder exchanging exchangeable shares for units pursuant to the exercise of the exchange right will recognize capital gain or loss (i) if the exchange request is satisfied by the delivery of units by Brookfield pursuant to the Rights Agreement or (ii) if the exchange request is satisfied by the delivery of units by our company and the exchange is, within the meaning of Section 302(b) of the U. S. Internal Revenue Code, in “complete redemption” of the U. S. Holder’s equity interest in our company, a “substantially disproportionate” redemption of stock, or “not essentially equivalent to a dividend”, applying certain constructive ownership rules that take into account not only the exchangeable shares and other equity interests in our company actually owned but also other equity interests in our company treated as constructively owned by such U. S. Holder for U. S. federal income tax purposes. If an exchange request satisfied by the delivery of units by our company is not treated as a sale or exchange under the foregoing rules, then it will be treated as a taxable distribution 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 exchanged.

44 Brookfield Infrastructure Corporation

In general, if the partnership satisfies an exchange request by delivering units to a U. S. Holder pursuant to the partnership’s exercise of the partnership call right, then the U. S. Holder’s exchange of exchangeable shares for units will qualify as tax-free under Section 721(a) of the U. S. Internal Revenue Code, unless at the time of such exchange, the partnership (i) is a publicly traded partnership treated as a corporation for U. S. federal income tax purposes or (ii) would be an “investment company” if it were incorporated for purposes of Section 721(b) of the U. S. Internal Revenue Code. In the case described in (i) or (ii) of the preceding sentence, a holder that is a U. S. taxpayer may recognize gain upon the exchange. We understand that the general partner of