Company: TCPA
Filing Date: 2025-10-06
Form Type: SUPPL
Source: 0001193125-25-231083
Chunk: 50

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-10-06
Form: SUPPL
Chunk 50
---
 such option is remote within the meaning of the U.S. Treasury regulations in part due to the Dividend Stopper
Undertaking.

Based on the foregoing, we intend to take the position that the likelihood of the exercise of the option to defer payments
of stated interest on the Notes should not result in the Notes being issued with OID. Our determination regarding the remoteness of such exercise 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. Our determination is not, however, 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. If the likelihood of such
exercise was determined not to be remote, the Notes would be treated as issued with OID and all stated interest would be treated as OID as long as the Notes are outstanding. In that case, a U.S. holder would be required to accrue interest income on
the Notes on an annual basis under a constant yield accrual method regardless of its regular method of accounting for U.S. federal income tax purposes. The remainder of this discussion assumes that the Notes will not be treated as issued with OID
solely as a result of us having the option under certain circumstances to defer payments of stated interest on the Notes. Moreover, it is expected, and assumed for purposes of this discussion that, the Notes will be issued with less than a de minimis amount of OID for U.S. federal income tax purposes.

Payments of qualified stated interest on a Note (including any additional
amounts paid in respect of withholding taxes and without reduction for any amounts withheld) will be includible in the gross income of a U.S. holder as ordinary interest income at the time such payments are received or accrued, in accordance with
such U.S. holder’s regular method of accounting for U.S. federal income tax purposes. “Qualified stated interest” generally is stated interest that is “unconditionally payable” in cash or property (other than our debt
instruments) at least annually during the entire term of a Note either at a single fixed rate, or a qualifying variable rate.

Stated
interest on a Note and OID, if any, accrued with respect to a Note generally will constitute foreign source income and generally will be considered “passive category income” in computing the foreign tax credit allowable to U.S. holders
under U.S. federal income tax laws.

Any non-U.S. withholding tax