Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 129

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 129
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 is deemed to hold “plan
assets” for purposes of ERISA and Section 4975 of the Code and transactions in which the Company may engage will be subject
to ERISA’s fiduciary obligations, as well as the prohibited transaction rules of ERISA and Section 4975 of the Code.

The foregoing discussion is general in nature. Due to the complexity of the applicable rules and penalties under ERISA, the Code and Similar Laws, each Plan fiduciary (and each fiduciary for non-U.S., governmental or church plans subject to Similar Law) should consult with its legal advisor concerning the potential consequences to the applicable Plan or plan under ERISA, Section 4975 of the Code or such Similar Laws of an investment in the Exchange Notes.

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CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</div>

The exchange of Initial
Notes for Exchange Notes pursuant to the Exchange Offer will not be treated as a taxable transaction for U.S. federal income tax purposes
because the terms of the Exchange Notes will not be considered to differ materially in kind or in extent from the terms of the Initial
Notes. Rather, the Exchange Notes you receive will be treated as a continuation of your investment in the Initial Notes. As a result,
you will not recognize gain or loss upon the exchange of your Initial Notes for Exchange Notes. In addition, your basis and holding period
in the Exchange Notes will be the same as your basis and holding period in the Initial Notes exchanged therefor.

THE FOREGOING DISCUSSION OF U.S. FEDERAL INCOME TAX CONSEQUENCES DOES NOT CONSIDER THE FACTS AND CIRCUMSTANCES SPECIFIC TO ANY PARTICULAR HOLDER OF INITIAL NOTES. IF YOU ARE CONSIDERING EXCHANGING YOUR INITIAL NOTES FOR EXCHANGE NOTES, YOU SHOULD CONSULT YOUR TAX ADVISERS CONCERNING THE TAX CONSEQUENCES OF THE EXCHANGE UNDER U.S. FEDERAL, STATE, LOCAL AND FOREIGN LAWS.

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CERTAIN BERMUDA CONSIDERATIONS</div>

Tax

On December 27, 2023, Bermuda enacted the CIT Act. Entities subject to tax under the CIT Act are the Bermuda constituent entities of multi-national groups. A multi-national group is defined under the CIT Act as a group with entities in more than one jurisdiction with consolidated revenues of at least EUR750 million for two of the four previous fiscal years.

If Bermuda constituent entities of