Company: TCPA
Filing Date: 2025-02-20
Form Type: SUPPL
Source: 0001193125-25-030844
Chunk: 43

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-02-20
Form: SUPPL
Chunk 43
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 U.S. federal income tax treatment of securities similar to the Notes. We intend to take the position, to the extent required to do so, that the Notes are classified for U.S. federal income tax purposes as indebtedness
(although there is no controlling authority directly on point). However, our characterization of the Notes is not binding on the IRS, and no assurance can be given that the IRS will not assert, or a court would not sustain, a contrary position
regarding the characterization of the Notes. If the IRS were to successfully challenge the classification of the Notes as indebtedness, interest payments on the Notes likely would be treated for U.S. federal income tax purposes as distributions with
respect to an equity interest. By acquiring an interest in a Note, each beneficial owner of a Note will agree, to treat the Notes as indebtedness for U.S. federal income tax purposes unless otherwise required by a change in law after the Notes are
issued or the good faith resolution of a tax audit or other tax proceeding, and the remainder of this discussion assumes this treatment. Prospective U.S. holders should consult their own tax advisors regarding the tax consequences that will arise if
the Notes are not treated as indebtedness for U.S. federal income tax purposes.

In addition, in certain circumstances (see
“Description of the Notes—Optional Redemption,” “Description of the Notes—Payment of Additional Amounts” and “Description of the Notes—Redemption on a Tax Event or Rating Event”), we
may be obligated to redeem the Notes prior to maturity or to pay amounts on the Notes that are in excess of stated interest or principal on the Notes. These potential payments may implicate the provisions of U.S. Treasury regulations relating to
“contingent payment debt instruments,” but we do not intend to treat the possibility of such contingent payments on the Notes as subjecting the Notes to the contingent payment debt instrument rules. Our determination that the Notes are not
subject to the contingent payment debt instrument rules is binding on a U.S. holder, unless such U.S. holder discloses its contrary position in the manner required by applicable U.S. Treasury regulations. It is possible that the IRS may take a
different position, in which case, if such position is sustained, a U.S. holder might be required to accrue ordinary interest income at a higher rate than the stated interest rate and to treat as ordinary income rather than capital gain any gain
recognized on the taxable disposition of the Notes. The remainder of this discussion assumes that the Notes