Company: TCPA
Filing Date: 2025-10-08
Form Type: SUPPL
Source: 0001193125-25-233745
Chunk: 50

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-10-08
Form: SUPPL
Chunk 50
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 U.S. federal income tax purposes. “Qualified stated interest” generally is stated interest that is “unconditionally payable” in cash or property (other than our debt
instruments) at least annually during the entire term of a Note either at a single fixed rate, or a qualifying variable rate.

Stated
interest on a Note and OID, if any, accrued with respect to a Note generally will constitute foreign source income and generally will be considered “passive category income” in computing the foreign tax credit allowable to U.S. holders
under U.S. federal income tax laws.

Any non-U.S. withholding tax paid in respect of a payment of
interest to a U.S. holder on the Notes may be eligible for a foreign tax credit (or a deduction in lieu of such credit) for U.S. federal income tax purposes. However, there are significant complex limitations on a U.S. holder’s ability to
claim such a credit or deduction. U.S. holders should consult their tax advisors concerning the foreign tax credit and deductibility implications of any non-U.S. taxes withheld with respect to the Notes
generally and in their particular circumstances.

Exercise of Deferral Option

If we exercise our option to defer the payment of interest on the Notes, pursuant to certain applicable U.S. Treasury regulations, we expect to
treat the Notes as if they had been redeemed and reissued solely for OID purposes. Accordingly, all remaining interest payments on the Notes (including interest on deferred interest) could be treated as OID, which a U.S. holder would be required to
accrue and include in its taxable income on a constant yield basis over the remaining term of the Notes, without regard to the time interest is actually paid on the Notes and without regard to such U.S. holder’s regular method of accounting
for U.S. federal income tax purposes. The amount of OID income includible in such U.S. holder’s taxable income would be determined on the basis of a constant yield method over the remaining term of the Notes, and the actual receipt of future
payments of stated interest on the Notes would no longer be separately reported as taxable income. The total amount of OID related to the deferred payments that would accrue during the deferral period would be approximately equal to the amount of
the cash payment due immediately following the end of that period. Any OID included in income would increase such U.S. holder’s adjusted tax basis in its Notes, and its actual receipt of cash interest payments would reduce that adjusted tax
basis