Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 235

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 235
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The applicability of the startup exception to us will not be known until after the close of our current taxable year and, perhaps, until
after the close of the first two taxable years following our current taxable year. Further, after the acquisition of a company or assets
in a business combination, we may still meet one of the PFIC tests depending on the timing of the acquisition and the amount of our passive
income and assets as well as the passive income and assets of the acquired business. If the company that we acquire in a business combination
is a PFIC, then we will likely not qualify for the startup exception and will be a PFIC for our current taxable year. Our actual PFIC
status for our current taxable year or any subsequent taxable year will not be determinable until after the end of such taxable year.
Accordingly, there can be no assurance with respect to our status as a PFIC for our current taxable year or any future taxable year.

Although our PFIC status is determined annually,
an initial determination that our company is a PFIC will generally apply for subsequent years to a U.S. Holder who held ordinary shares
or rights while we were a PFIC, whether or not we meet the test for PFIC status in those subsequent years. If we are determined to be
a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of our Securities and, in the
case of our ordinary share, the U.S. Holder did not make either a timely qualified electing fund (“QEF”) election or a mark-to-market
election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) ordinary share, as described below,
such U.S. Holder generally will be subject to special rules with respect to (i) any gain recognized by the U.S. Holder on the sale or
other disposition of its ordinary shares or rights and (ii) any “excess distribution” made to the U.S. Holder (generally,
any distributions to such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions
received by such U.S. Holder in respect of the ordinary shares during the three preceding taxable years of such U.S. Holder or, if shorter,
such U.S. Holder’s holding period for the ordinary share).

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Under these rules:

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