Company: TACOW
Filing Date: 2025-04-09
Form Type: S-1/A
Source: 0001829126-25-002484
Chunk: 134

Company: Berto Acquisition Corp.
Filing Date: 2025-04-09
Form: S-1/A
Chunk 134
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 of the Excise Tax, although the
interpretation and operation of certain other aspects of the Excise Tax remain unclear. Although these proposed Treasury regulations
are not final, taxpayers generally may rely on them until final Treasury regulations are issued. However, there can be no assurance that
final Treasury regulations will not adversely affect the accuracy of the below description of the Excise Tax considerations that may
be applicable to us if we were to become a “covered corporation” in the future.

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As a Cayman Islands exempted
company, we are currently not a “covered corporation” for purposes of the Excise Tax. Accordingly, we generally would not
be subject to the Excise Tax on a redemptions of our stock in connection with an extension of the date by which we must consummate our
initial business combination or in connection with our liquidation if we fail to consummate our initial business combination by such
date. If we were to become a “covered corporation” in the future, whether and to what extent we would be subject to the Excise
Tax on a redemption of our stock would depend on a number of factors, including (i) whether the redemption is treated as a repurchase
of stock for purposes of the Excise Tax, (ii) the fair market value of the redemption treated as a repurchase of stock, (iii) the structure
of our initial business combination, (iv) the nature and amount of any “PIPE” or other equity issuances (whether in connection
with our initial business combination or otherwise) issued within the same taxable year of a redemption treated as a repurchase of stock
and (v) the content of final Treasury regulations and other additional guidance from the Treasury addressing the Excise Tax. As noted
above, the Excise Tax would be payable by the repurchasing corporation, and not by the redeeming holder. If we were to become a “covered
corporation” in the future, the imposition of the Excise Tax on us as a result of redemptions by us could reduce the amount of
cash available to pay redemptions or reduce the cash available to the target business in connection with our initial business combination,
which could cause investors in our securities who do not redeem or the other shareholders of the combined company to economically bear
the impact of such Excise Tax. The proceeds placed in the trust account and the interest earned thereon are not intended to be used to
pay for the possible Exc