Company: CRAC
Filing Date: 2025-07-11
Form Type: S-1/A
Source: 0001213900-25-062977
Chunk: 287

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-07-11
Form: S-1/A
Chunk 287
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 income as a result of the mark -to -marketelection). The U.S. Holder’s basis in its Class A ordinary shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of the Class A ordinary shares will be treated as ordinary income. Currently, a mark -to -marketelection may not be made with respect to our Share Rights. The mark -to -marketelection is available only for stock that is regularly traded on a national securities exchange that is registered with the Securities and Exchange Commission, including the Nasdaq (on which we intend to list the Class A ordinary shares), or on a foreign exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. U.S. Holders should consult their own tax advisors regarding the availability and tax consequences of a mark -to -marketelection in respect of our ordinary shares under their particular circumstances. If we are a PFIC and, at any time, have a foreign subsidiary that is classified as a PFIC, U.S. Holders generally would be deemed to own a portion of the shares of such lower -tierPFIC, and generally could incur liability for the deferred tax and interest charge described above if we receive a distribution from, or dispose of all or part of our interest in, the lower -tierPFIC or the U.S. Holders otherwise were deemed to have disposed of an interest in the lower -tierPFIC. Upon request, we will endeavor to cause any lower -tierPFIC to provide to a U.S. Holder the information that may be required to make or maintain a QEF election with respect to the lower -tierPFIC. However, there is no assurance that we will have timely knowledge of the status of any such lower -tierPFIC. In addition, we may not hold a controlling interest in any such lower -tierPFIC and thus there can be no assurance we will be able to cause the lower -tierPFIC to provide the required information. A mark -to -marketelection generally would not be available with respect to such lower -tierPFIC. U.S. Holders are urged to consult their own tax advisors regarding the tax issues raised by lower -tierPFICs. 176 A U.S. Holder that owns (or is deemed to own) shares in a PFIC during any taxable year of the U.S. Holder, may have to file an IRS Form