Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 68

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 68
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 the

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activities of the partnership. Entities or arrangements treated as partnerships for U.S. federal income tax purposes that are considering an investment in Notes and investors therein should
consult their tax advisors regarding the tax consequences of the acquisition, ownership or disposition of the Notes.

Effect of Certain Contingencies

In certain circumstances we may be obligated to pay amounts in excess of stated interest or principal on the Notes (see, for example,
“Description of Debt Securities– Payment of Additional Amounts” in the Prospectus and “Description of Notes–Optional Redemption,” “Description of Notes– Repurchase Upon Change of Control Triggering Event” and “Description of Notes– Tax Redemption” in this Prospectus Supplement). These potential payments may
implicate the U.S. Treasury Regulations relating to “contingent payment debt instruments.” However, under the applicable U.S. Treasury Regulations, such contingent payments should not cause the Notes to be contingent payment debt
instruments if, based on all the facts and circumstances as of the date on which the Notes are issued, there is only a remote likelihood that any contingencies causing the payment of such excess amounts will occur, if such excess amounts, in the
aggregate, are considered incidental or if another exception applies. We believe and, to the extent required to take a position, intend to take the position that the possibility of paying excess amounts should not cause the Notes to be contingent
payment debt instruments. Our position will be binding on a U.S. Holder unless such holder timely and explicitly discloses its contrary position in the manner required by applicable U.S. Treasury Regulations. Our position, however, is not
binding on the IRS. If the IRS successfully challenges this position, a U.S. Holder may be required to accrue interest income on its Notes at a rate in excess of the stated interest rate and to treat any gain recognized on the taxable disposition of
a Note as ordinary income rather than as capital gain. Prospective U.S. Holders should consult their own tax advisors regarding this issue. The remainder of this discussion assumes that the Notes will not be treated as contingent payment debt
instruments.

Interest

Interest (including, for purposes of this discussion, any taxes withheld therefrom and any additional amounts paid with respect thereto) on
the Notes will generally be taxable to a U.S. Holder as ordinary income at the time it is received or accrued in accordance with such holder’s regular method of accounting for U.S. federal income tax purposes. Such interest generally
will constitute income from