Company: TCPA
Filing Date: 2025-02-19
Form Type: SUPPL
Source: 0001193125-25-029207
Chunk: 46

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-02-19
Form: SUPPL
Chunk 46
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 or deduction. U.S.
holders should consult their tax advisors concerning the foreign tax credit and deductibility implications of any non-U.S. taxes withheld with respect to the Notes generally and in their particular
circumstances.

Exercise of Deferral Option

If we exercise our option to defer the payment of interest on the Notes, pursuant to certain applicable U.S. Treasury regulations, we expect to
treat the Notes as if they had been redeemed and reissued solely for OID purposes. Accordingly, all remaining interest payments on the Notes (including interest on deferred interest) could be treated as OID, which a U.S. holder would be required to
accrue and include in taxable income on a constant yield basis over the remaining term of the Notes, without regard to the time interest is actually paid on the Notes and without regard to such U.S. holder’s regular method of accounting for
U.S. federal income tax purposes. The amount of OID income includible in such U.S. holder’s taxable income would be determined on the basis of a constant yield method over the remaining term of the Notes, and the actual receipt of future
payments of stated interest on the Notes would no longer be separately reported as taxable income. The total amount of OID related to the deferred payments that would accrue during the deferral period would be approximately equal to the amount of
the cash payment due immediately following the end of that period. Any OID included in income would increase such U.S. holder’s adjusted tax basis in its Notes, and its actual receipt of cash interest payments would reduce that adjusted tax
basis. Accordingly, if a U.S. holder sells a Note during a Deferral Period, although such U.S. holder will not receive any of the interest that accrued on that Note during the Deferral Period, such U.S. holder will be required to report any OID
accrued while it held such Note as income for U.S. federal income tax purposes.

S-31

Sale, Exchange, Retirement, Redemption or Other Taxable Disposition of Notes

Upon the sale, exchange, retirement, redemption or other taxable disposition of a Note, a U.S. holder generally will recognize gain or loss
equal to the difference, if any, between (i) the amount realized upon such disposition (other than any amount equal to any accrued but unpaid stated interest (and any additional amounts paid with respect thereto), which, if not previously
included in such U.S. holder’s income, will be taxable as ordinary interest income in accordance with