Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 234

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 234
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 treatment of the rights to acquire ordinary shares
is uncertain. The rights may be viewed as a forward contract, derivative security or similar interest in our company (analogous to a
warrant or option with no exercise price), and thus the holder of the rights would not be viewed as owning the ordinary shares issuable
pursuant to the rights until such ordinary shares are actually issued. There may be other alternative characterizations of the rights
that the IRS may successfully assert, including that the rights are treated as equity in our company at the time the rights are issued.

The tax consequences of an acquisition of our ordinary
shares pursuant to rights are unclear and will depend on the treatment of any initial business combination. Accordingly, U.S. Holders
should consult their tax advisors regarding the tax consequences of an acquisition of ordinary shares pursuant to rights and the consequences
of any initial business combination.

Passive Foreign Investment Company Rules

A non-U.S. corporation will be classified as a PFIC
for United States federal income tax purposes if either (i) at least 75% of its gross income in a taxable year, including its pro rata
share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income
or (ii) at least 50% of its assets in a taxable year (ordinarily determined based on fair market value and averaged quarterly over the
year), including its pro rata share of the assets of any corporation in which it is considered to own at least 25% of the shares by value,
are held for the production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties
(other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets.

Because we are a blank check company, with no current
active business, we believe that it is likely that we will meet the PFIC asset or income test for our current taxable year. However,
pursuant to a startup exception, a corporation will not be a PFIC for the first taxable year the corporation has gross income (the “startup
year”), if (1) no predecessor of the corporation was a PFIC; (2) the corporation satisfies the IRS that it will not be a PFIC for
either of the first two taxable years following the startup year; and (3) the corporation is not in fact a PFIC for either of those years.