Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 53

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 10
Chunk 53
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, our partnership’s items of income, gain, loss, deduction, or credit would be reflected only on our partnership’s tax return rather than being passed through to our unitholders, and our partnership would be subject to U. S. corporate income tax and potentially branch profits tax with respect to its income, if any, effectively connected with a U. S. trade or business. Moreover, under certain circumstances, our partnership might be classified as a PFIC for U. S. federal income tax purposes, and a U. S. Holder would be subject to the rules applicable to PFICs discussed below. See “ - Consequences to U. S. Holders - Passive Foreign Investment Companies”. Subject to the PFIC rules, distributions made to U. S. Holders would be treated as taxable dividend income to the extent of our partnership’s current or accumulated earnings and profits. Any distribution in excess of current and accumulated earnings and profits would first be treated as a tax-free return of capital to the extent of a U. S. Holder’s adjusted tax basis in its units. Thereafter, to the extent such distribution were to exceed a U. S. Holder’s adjusted tax basis in its units, the distribution would be treated as gain from the sale or exchange of such units. The amount of a distribution treated as a dividend could be eligible for reduced rates of taxation, provided certain conditions are met. In addition, dividends, interest and certain other passive income received by our partnership with respect to U. S. investments generally would be subject to U. S. withholding tax at a rate of 30% (although certain Non-U. S. Holders nevertheless might be entitled to certain treaty benefits in respect of their allocable share of such income) and U. S. Holders would not be allowed a tax credit with respect to any such tax withheld. In addition, the “portfolio interest” exemption would not apply to certain interest income of our partnership (although certain Non-U. S. Holders nevertheless might be entitled to certain treaty benefits in respect of their allocable share of such income). Depending on the circumstances, additional adverse U. S. federal income tax consequences could result under the anti-inversion rules described in Section 7874 of the U. S. Internal Revenue Code, the Treasury Regulations under Section 385 of the U. S. Internal Revenue Code, or other provisions of the U. S. Internal Revenue Code, as implemented by the Treasury Regulations and IRS administrative guidance. Based on the foregoing consequences, the treatment of