Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 157

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 3
Chunk 157
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 the Tax Act) other than taxable dividends, and taxable capital gains from dispositions of “non-portfolio properties”. “ Non-portfolio properties” include, among other things, equity interests or debt of corporations, trusts or partnerships that are resident in Canada, and of non-resident persons or partnerships the principal source of income of which is one or any combination of sources in Canada (other than a “portfolio investment entity”, as defined in the Tax Act), that are held by the “ SIFT partnership” and have a fair market value that is greater than 10% of the equity value of such entity, or that have, together with debt or equity that the “ SIFT partnership” holds of entities affiliated (within the meaning of the Tax Act) with such entity, an aggregate fair market value that is greater than 50% of the equity value of the “ SIFT partnership”. The tax rate that is applied to the above mentioned sources of income and gains is set at a rate equal to the “net corporate income tax rate”, plus the “provincial SIFT tax rate” (each as defined in the Tax Act).

A partnership will be a “ SIFT partnership” throughout a taxation year if at any time in the taxation year (i) it is a “ Canadian resident partnership” (as defined in the Tax Act), (ii) “investments” (as defined in the Tax Act) in the partnership are listed or traded on a stock exchange or other public market, and (iii) it holds one or more “non-portfolio properties”. For these purposes, a partnership will be a “ Canadian resident partnership” at a particular time if (a) it is a “ Canadian partnership” (as defined in the Tax Act) at that time, (b) it would, if it were a corporation, be resident in Canada (including, for greater certainty, a partnership that has its central management and control located in Canada), or (c) it was formed under the laws of a province. A “ Canadian partnership” for these purposes is a partnership all of whose members are resident in Canada or are partnerships that are “ Canadian partnerships”.

Under the SIFT Rules, our partnership and the Holding LP could each be a “ SIFT partnership” if it is a “ Canadian resident partnership”. However, the Holding LP would not be a “ SIFT partnership” if our partnership is a “ SIFT partnership” regardless of whether the Holding LP is a “ Canadian resident partnership” on the basis that the Holding LP would be an “ex