Company: BIPC
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014377
Chunk: 325

Company: Brookfield Infrastructure Corp
Filing Date: 2025-03-24
Form: 20-F
Item: Item 10
Chunk 325
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 U. S. Holder’s exchange of exchangeable shares for units pursuant to the exercise of the partnership call right by the partnership and, contrary to the current expectations of the general partner of the partnership, none of the special provisions (including Section 704(c)(1) of the U. S. Internal Revenue Code) described in the two preceding paragraphs applies, then such U. S. Holder generally should not recognize gain or loss with respect to exchangeable shares treated as contributed to the partnership in exchange for units, except as described below under the heading “ - Passive Foreign Investment Company Considerations”. The aggregate tax basis of the units received by such U. S. Holder pursuant to the partnership call right would be the same as the aggregate tax basis of the exchangeable shares (or single undivided portion thereof) exchanged therefor, increased by such holder’s share of the partnership’s liabilities, if any. The holding period of the units received in exchange for exchangeable shares would include the holding period of the exchangeable shares surrendered in exchange therefor. A U. S. Holder who acquired different blocks of exchangeable shares at different times or different prices should consult its own tax adviser regarding the manner in which gain or loss should be determined in such holder’s particular circumstances and such holder’s holding period in units received in exchange for exchangeable shares.

252 Brookfield Infrastructure Corporation

For a general discussion of the tax consequences to a U. S. Holder of owning and disposing of units received in exchange for exchangeable shares, see the discussion in Item 10. E “ Taxation - Certain Material U. S. Federal Income Tax Considerations” in the partnership’s most recent annual report. The U. S. federal income tax consequences of exchanging exchangeable shares for units are complex, and each U. S. Holder should consult its own tax adviser regarding such consequences in light of such holder’s particular circumstances.

Passive Foreign Investment Company Considerations. Certain adverse U. S. federal income tax consequences could apply to a U. S. Holder if our company is treated as a PFIC for any taxable year during which the U. S. Holder holds exchangeable shares. A non-U. S. corporation, such as our company, will be classified as a PFIC for U. S. federal income tax purposes for any taxable year in which, after applying certain look-through rules, either (i) 75% or more of its gross income for such year consists of certain types of “passive” income or (ii) 50%