Company: APXIF
Filing Date: 2025-01-22
Form Type: F-4
Source: 0001213900-25-005463
Chunk: 185

Company: APx Acquisition Corp. I
Filing Date: 2025-01-22
Form: F-4
Chunk 185
---
 and has requested that the IRS accept such election with an effective date that is retroactive to the date on which Heritas Argentina was contributed to the Company. The Company expects that the IRS will accept the late -filedclassification election with an effective date as of the date on which Heritas Argentina was contributed to the Company. However, if the IRS does not accept the late -filedclassification election with the requested effective date, then the contribution of Heritas Argentina to the Company may fail to qualify as a reorganization under Section 368(a)(1)(F) of the Code, and such contribution, when considered in conjunction with the changes to the ownership of Heritas Argentina, may result in the Company being classified as a U.S. corporation under rules applicable pursuant to Code Section 7874. The Company does not believe it should be treated as a U.S. corporation for U.S. federal income tax purposes. However, the relevant law is not entirely clear, is subject to detailed but relatively new regulations (the application of which is uncertain in various respects, and whose interaction with general principles of U.S. tax law remains untested) and is subject to various other uncertainties. Therefore, the IRS could assert that the Company should be treated as a U.S. corporation (and, therefore, a U.S. tax resident) for U.S. federal income tax purposes pursuant to Section 7874 of the Code. In addition, changes to Section 7874 of the Code or the U.S. Treasury Regulations promulgated thereunder, or interpretations thereof, could affect the Company’s status as a foreign corporation. Such changes could potentially have retroactive effect. 74 If the IRS successfully challenged the Company’s status as a foreign corporation, significant adverse tax consequences would result for the Company. For example, if the Company were to be treated as a U.S. corporation for U.S. federal income tax purposes, it could be subject to substantial liability for additional U.S. income taxes, and the gross amount of any dividend payments to its non -U.S. holders could be subject to U.S. withholding tax. The Business Combination is not conditioned on the Company not being treated as a domestic corporation for U.S. federal income tax purposes or upon a receipt of an opinion of counsel to that effect. In addition, no party has requested a ruling from the IRS regarding the U.S. federal income tax consequences of the Business Combination. Accordingly, while the Company does not believe it will be treated as a domestic corporation, no assurance can be given