Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 56

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1
Chunk 56
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 loss realized by such holder on the sale or exchange of Ordinary Shares is long-term capital gain or loss and for determining
whether any dividend we pay would be considered “qualified dividends” for U.S. federal income tax purposes. See the section
titled “Taxation—United States Federal Income Tax Considerations” for a summary of the U.S. federal income tax considerations
of an investment in our securities. Prospective investors are urged to consult their tax advisors with respect to these and other tax
consequences when purchasing, holding or disposing of our securities.

If
our initial business combination involves a company organized under the laws of the United States, it is possible a 1% U.S. federal excise
tax will be imposed on us in connection with redemptions of our Ordinary Shares after or in connection with such initial business combination.

The
Inflation Reduction Act of 2022, among other things, imposes a 1% excise tax on the fair market value of stock repurchased by a publicly
traded domestic (i.e., United States) corporation (and certain non-U.S. corporations treated as a “surrogate foreign corporations”)
beginning in 2023, with certain exceptions (the “Excise Tax”). The amount of the Excise Tax is generally 1% of the fair market
value of the shares of the stock repurchased at the time of the repurchase and will apply to stock repurchases occurring in 2023 and
beyond. The U.S. Department of the Treasury has been given authority to provide regulations and other guidance to carry out, and prevent
the abuse or avoidance of, the excise tax; however, only limited guidance has been issued to date.

As
an entity incorporated as a Cayman Islands exempted company, the Excise Tax is not expected to apply to redemptions of our Ordinary Shares
(absent any regulations and other additional guidance that may be issued in the future with retroactive effect).

However,
we may be subject to the Excise Tax if, in connection with an initial business combination and prior to certain redemptions, we domesticate
into the United States or if we are considered a surrogate foreign corporation under the Internal Revenue Code (the “Code”).
We will be considered as a surrogate foreign corporation if, after our acquisition of a United States corporation, at least 60% of our
stock, by vote or value, is held by former shareholders of the United States corporation by reason of their holding stock in such United