Company: TCPA
Filing Date: 2025-02-19
Form Type: SUPPL
Source: 0001193125-25-029207
Chunk: 44

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-02-19
Form: SUPPL
Chunk 44
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 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 will not be treated as contingent payment debt instruments. Prospective U.S. holders are 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 instrument will not be timely paid. We
believe the likelihood that we exercise such option is remote within the meaning of the U.S. Treasury regulations in part due to the Dividend Stopper Undertaking.

S-30

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