Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 236

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 236
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 U.S. Holder’s gain or excess                                                                                
 distribution will be allocated ratably over the U.S. Holder’s holding period for the ordinary shares or rights; |

| ● | the amount allocated to the U.S. Holder’s                                                                                            
 taxable year in which the U.S. Holder recognized the gain or received the excess distribution, or to the period in the U.S. Holder’s 
 holding period before the first day of our first taxable year in which we are a PFIC, will be taxed as ordinary income;              |

| ● | the amount allocated to other taxable                                                                                             
 years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed at the highest tax rate in effect 
 for that year and applicable to the U.S. Holder; and                                                                              |

| ● | an additional tax equal to the interest                                                                                             
 charge generally applicable to underpayments of tax will be imposed on the U.S. Holder with respect to the tax attributable to each 
 such other taxable year of the U.S. Holder.                                                                                         |

In general, if we are determined to be a PFIC, a
U.S. Holder may avoid the PFIC tax consequences described above in respect to our ordinary shares (but possibly not our rights) by making
a timely and valid QEF election (if eligible to do so) to include in income its pro rata share of our net capital gains (as long-term
capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the
taxable year of the U.S. Holder in which or with which our taxable year ends. A U.S. Holder generally may make a separate election to
defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be subject to
an interest charge. In the alternative, a U.S. Holder may avoid the PFIC tax consequences described above by making a “mark-to-market”
election. The QEF election and mark-to-market election are described further below.

The treatment of the rights to acquire our ordinary
shares is unclear. For example, the rights may be viewed as a forward contract, derivative security or similar interest in our company
(analogous to a warrant or option with no exercise price), and thus the holder of the rights would not be viewed as owning the ordinary
shares issuable pursuant to the rights until such ordinary shares are actually issued. There may be other alternative