Company: TCPA
Filing Date: 2025-10-06
Form Type: SUPPL
Source: 0001193125-25-231083
Chunk: 48

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-10-06
Form: SUPPL
Chunk 48
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 TAX CONSEQUENCES SET OUT BELOW IS FOR GENERAL INFORMATION ONLY. ALL PROSPECTIVE PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES TO THEM OF ACQUIRING, OWNING, AND DISPOSING OF THE NOTES, INCLUDING THE APPLICABILITY AND EFFECT OF U.S. FEDERAL, STATE AND LOCAL AND NON-U.S.AND OTHER TAX LAWS AND POSSIBLE CHANGES IN TAX LAW.

S-29

Characterization of the Notes

The determination of whether a security should be classified as indebtedness or equity for U.S. federal income tax purposes requires a judgment
based on all relevant facts and circumstances. There is no statutory, judicial or administrative authority that directly addresses the U.S. federal income tax treatment of securities similar to the Notes. As a result, the U.S. federal income tax
treatment of the Notes is not clear. We intend to take the position, to the extent required to do so, that the Notes are classified for U.S. federal income tax purposes as indebtedness (although there is no controlling authority directly on point).
However, our characterization of the Notes is not binding on the IRS, and no assurance can be given that the IRS will not assert, or a court would not sustain, a contrary position regarding the characterization of the Notes.

If the IRS were to successfully challenge the classification of the Notes as indebtedness, interest payments on the Notes likely would be
treated for U.S. federal income tax purposes as distributions with respect to an equity interest, in which case such payments would generally be treated as dividends to the extent of our current or accumulated earnings and profits. The Notes may be
treated as equity interests in a “passive foreign investment company” for U.S. federal income tax purposes, in which case a U.S. holder of the Notes could be subject to significant adverse tax consequences, including, among others,
imputed interest charges together with tax calculated at ordinary income rates on any gain from the sale, exchange, retirement, redemption or other taxable disposition of the Notes. So long as we are not treated as a “passive foreign
investment company” for U.S. federal income tax purposes, if the Notes were treated as equity interests for U.S. federal income tax purposes, gain or loss on the sale, exchange, retirement, redemption or other taxable disposition of a Note is
expected to be treated in a similar manner as described under “—Sale, Exchange, Retirement, Redemption or Other Taxable Dis