Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 145

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 3
Chunk 145
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 ability to maximize its cash flow.

Our unitholders taxable in the United States may be viewed as holding an indirect interest in an entity classified as a “passive foreign investment company” for U. S. federal income tax purposes.

U. S. Holders may face adverse U. S. tax consequences arising from the ownership of an indirect interest in an entity classified as a “passive foreign investment company” (“ PFIC”) for U. S. federal income tax purposes. Based on our organizational structure, as well as our expected income and assets, our General Partner currently believes that a U. S. Holder is unlikely to be regarded as owning an interest in a PFIC solely by reason of owning our units during the taxable year ending December 31, 2025. However, our General Partner believes that some of our corporate subsidiaries may have been PFICs in prior taxable years. Moreover, there can be no assurance that a future entity in which our partnership acquires an interest will not be classified as a PFIC with respect to a U. S. Holder, because PFIC status is a factual determination that depends on the assets and income of a given entity and must be made on an annual basis. In general, gain realized by a U. S. Holder from the sale of stock of a PFIC is subject to tax at ordinary income rates, and an interest charge generally applies. Alternatively, a U. S. Holder that makes certain elections with respect to a direct or indirect interest in a PFIC may be required to recognize taxable income prior to the receipt of cash relating to such income. The adverse consequences of owning an interest in a PFIC, as well as certain tax elections for mitigating these adverse consequences, are described in greater detail in Item 10. E “ Taxation - Certain Material U. S. Federal Income Tax Considerations - Consequences to U. S. Holders - Passive Foreign Investment Companies”. Each U. S. Holder should consult its own tax adviser regarding the implications of the PFIC rules for an investment in our units.

Tax gain or loss from the disposition of our units could be more or less than expected.

Upon the sale of our units, a U. S. Holder generally will recognize gain or loss for U. S. federal income tax purposes equal to the difference between the amount realized and such holder’s adjusted tax basis in such units. Prior distributions to a U. S. Holder in excess of the total net taxable income allocated to such holder will have decreased such holder’s tax basis