Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 236

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 236
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 or with the consent of the IRS. U.S. Holders should consult their tax advisors regarding the
availability and tax consequences of a retroactive QEF election under their particular circumstances.

In
order to comply with the requirements of a QEF election, a U.S. Holder must receive a PFIC
annual information statement from us. If we determine we are a PFIC for any taxable year
(of which there can be no assurance), we will endeavor to provide to a U.S. Holder such information
as the IRS may require, including a PFIC annual information statement, in order to enable
the U.S. Holder to make and maintain a QEF election, but there is no assurance that we will
timely provide such required information. There is also no assurance that we will have timely
knowledge of our status as a PFIC in the future or of the required information to be provided.

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If a U.S. Holder has made a QEF election with respect
to our ordinary share, and the excess distribution rules discussed above do not apply to such shares (because of a timely QEF election
for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) such shares or a purge of the PFIC taint pursuant
to a purging election, as described above), any gain recognized on the sale of our ordinary shares generally will be taxable as capital
gain and no additional tax charge will be imposed under the PFIC rules. As discussed above, if we are a PFIC for any taxable year, a
U.S. Holder of our ordinary shares that has made a QEF election will be currently taxed on its pro rata share of our earnings and profits,
whether or not distributed for such year. A subsequent distribution of such earnings and profits that were previously included in income
generally should not be taxable when distributed to such U.S. Holder. The tax basis of a U.S. Holder’s shares in a QEF will be
increased by amounts that are included in income, and decreased by amounts distributed but not taxed as dividends, under the above rules.
In addition, if we are not a PFIC for any taxable year, such U.S. Holder will not be subject to the QEF inclusion regime with respect
to our ordinary shares for such a taxable year.

If we are a PFIC and our ordinary shares constitute
“marketable stock,” a U.S. Holder may avoid the adverse