Company: CGCT
Filing Date: 2025-04-14
Form Type: S-1/A
Source: 0001104659-25-034635
Chunk: 315

Company: Cartesian Growth Corp III
Filing Date: 2025-04-14
Form: S-1/A
Chunk 315
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 closing date, which would result in a short taxable year.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
(and, in the case of the startup exception to our current taxable year, perhaps until after the end of our two taxable years following
our startup 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. In addition, our U.S. counsel expresses no opinion with respect to our PFIC status for our current or future taxable years.
It is not entirely clear how various aspects of the PFIC rules apply to the warrants. Section 1298(a)(4) of the Code provides
that, to the extent provided in Treasury regulations, any person who has an option to acquire stock in a PFIC shall be considered to
own such stock in the PFIC for purposes of the PFIC rules. No final Treasury regulations are currently in effect under Section 1298(a)(4) of
the Code. However, proposed Treasury regulations under Section 1298(a)(4) of the Code have been promulgated with a retroactive
effective date (the “Proposed PFIC Option Regulations”). Each prospective investor is urged to consult its tax advisors regarding
the possible application of the Proposed PFIC Option Regulations to an investment in the warrants. Solely for discussion purposes, the
following discussion assumes that the Proposed PFIC Option Regulations will apply to the warrants.

Although our PFIC status is determined annually,
an initial determination that our company is a PFIC generally will apply for subsequent years to a U.S. Holder who held (or
was deemed to hold) Class A ordinary shares or warrants 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