Company: TCPA
Filing Date: 2025-10-06
Form Type: SUPPL
Source: 0001193125-25-231083
Chunk: 49

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-10-06
Form: SUPPL
Chunk 49
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position of Notes” below.

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.

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 will not be treated as contingent payment debt instruments.

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, including the consequences if we are a “passive foreign investment company”.
Prospective U.S. holders are also encouraged to consult their own tax advisors regarding the possible application of the contingent payment debt instrument rules to the Notes.

Stated Interest

We have the
option under certain circumstances to defer payments of stated interest on the Notes. Under the U.S. Treasury regulations relating to original issue discount (“OID”), a debt instrument is deemed to be issued with OID if there is
more than a “remote” contingency that periodic stated interest payments due on the

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instrument will not be timely paid. We believe the likelihood that we exercise