Company: BIPC
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014377
Chunk: 45

Company: Brookfield Infrastructure Corp
Filing Date: 2025-03-24
Form: 20-F
Item: Item 3
Chunk 45
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 for the partnership and Holding LP to immediately undertake subsequent transfers of such exchangeable shares that would result in the allocation to such U. S. Holder of any gain realized under Section 704(c)(1) of the U. S. Internal Revenue Code. Under this provision, if appreciated property is contributed to a partnership, the contributing partner must recognize any gain that was realized but not recognized for U. S. federal income tax purposes with respect to the property at the time of the contribution (referred to as “built-in gain”) if the partnership sells such property (or otherwise transfers such property in a taxable exchange) at any time thereafter or distributes such property to another partner within seven years of the contribution in a transaction that does not otherwise result in the recognition of “built-in gain” by the partnership. If, contrary to the current expectations of the general partner of the partnership, Section 704(c)(1) does not apply as a result of any such subsequent transfers by the partnership or Holding LP of exchangeable shares transferred by a U. S. Holder for units in an exchange qualifying as tax-free under Section 721(a) of the U. S. Internal Revenue Code, then such U. S. Holder could, nonetheless, be required to recognize part or all of the built-in gain in its exchangeable shares deferred as a result of such exchange under Section 737 or Section 707(a) of the U. S. Internal Revenue Code, depending on whether the partnership or Holding LP were to make certain types of distributions to such U. S. Holder following the exchange.

Brookfield Infrastructure Corporation 45

For a more complete discussion of the U. S. federal income tax consequences of the exchange of exchangeable shares for units, see Item 10. E “ Taxation - Certain Material U. S. Federal Income Tax Considerations - Consequences to U. S. Holders - Ownership and Disposition of Exchangeable Shares” below. The U. S. federal income tax consequences of exchanging exchangeable shares for units are complex, and U. S. Holders should consult their own tax advisers regarding such consequences in light of their particular circumstances.

Distributions on exchangeable shares made to Non-U. S. Holders may be subject to U. S. withholding tax if Section 871(m) of the U. S. Internal Revenue Code applies.

Distributions on exchangeable shares made to Non-U. S. Holders generally will not be subject to U. S. federal income tax, except that U.