Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 112

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 10
Chunk 112
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 Holder with certain information regarding its earnings and profits as required under applicable U. S. Treasury
regulations. We do not currently intend to prepare or provide the information that would enable you to make a qualified electing fund
election. If you hold Ordinary Shares in any taxable year in which we are a PFIC, you will be required to file U. S. Internal Revenue
Service Form 8621 in each such year and provide certain annual information regarding such Ordinary Shares, including regarding distributions
received on the Ordinary Shares and any gain realized on the disposition of the Ordinary Shares.

If
you do not make a timely “mark-to-market” election (as described above), and if we were a PFIC at any time during the period
you hold our Ordinary Shares, then such Ordinary Shares will continue to be treated as stock of a PFIC with respect to you even if we
cease to be a PFIC in a future year, unless you make a “purging election” for the year we cease to be a PFIC. A “purging
election” creates a deemed sale of such Ordinary Shares at their fair market value on the last day of the last year in which we
are treated as a PFIC. The gain recognized by the purging election will be subject to the special tax and interest charge rules treating
the gain as an excess distribution, as described above. As a result of the purging election, you will have a new basis (equal to the
fair market value of the Ordinary Shares on the last day of the last year in which we are treated as a PFIC) and holding period (which
new holding period will begin the day after such last day) in your Ordinary Shares for tax purposes.

  72  

IRC
Section 1014(a) provides for a step-up in basis to the fair market value for our Ordinary Shares when inherited from a decedent that
was previously a holder of our Ordinary Shares. However, if we are determined to be a PFIC and a decedent that was a U. S. Holder did
not make either a timely qualified electing fund election for our first taxable year as a PFIC in which the U. S. Holder held (or was
deemed to hold) our Ordinary Shares, or a mark-to-market election and ownership of those Ordinary Shares are inherited, a special provision
in IRC Section 1291(e) provides that the new U. S. Holder’s basis should be reduced by an amount equal to