Company: AUST
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001410578-25-000509
Chunk: 100

Company: Austin Gold Corp.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 10
Chunk 100
---
 a Subsidiary PFIC to its shareholder that is deemed to be received by a U. S. Holder) must be ratably allocated to each day in a Non-Electing U. S. Holder’s holding period for the Common Shares. The amount of any such gain or excess distribution allocated to the tax year of disposition or distribution of the excess distribution and to years before the entity became a PFIC, if any, would be taxed as ordinary income (and not eligible for certain preferential tax rates, as discussed below). The amounts allocated to any other tax year would be subject to U. S. federal income tax at the highest tax rate applicable to ordinary income in each such year, and an interest charge would be imposed on the tax liability for each such year, calculated as if such tax liability had been due in each such year. A Non-Electing U. S. Holder that is not a corporation must treat any such interest paid as “personal interest,” which is not deductible.

If we are a PFIC for any tax year during which a Non-Electing U. S. Holder holds Common Shares, we will continue to be treated as a PFIC with respect to such Non-Electing U. S. Holder, regardless of whether we cease to be a PFIC in one or more subsequent tax years. If we cease to be a PFIC, a Non-Electing U. S. Holder may terminate this deemed PFIC status with respect to Common Shares by electing to recognize gain (which will be taxed under the rules of Section 1291 of the Code as discussed above), but not loss, as if such Common Shares were sold on the last day of the last tax year for which we were a PFIC.

Table of Contents

QEF Election

A U. S. Holder that makes a QEF Election for the first tax year in which its holding period of its Common Shares begins generally will not be subject to the rules of Section 1291 of the Code discussed above with respect to its Common Shares. However, a U. S. Holder that makes a QEF Election will be subject to U. S. federal income tax on such U. S. Holder’s pro rata share of (a) our net capital gain, which will be taxed as long-term capital gain to such U. S. Holder, and (b) our ordinary earnings, which will be taxed as ordinary income to such U. S. Holder. Generally, “net capital gain” is the excess