Company: QSEA
Filing Date: 2025-03-11
Form Type: S-1/A
Source: 0001829126-25-001676
Chunk: 233

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-11
Form: S-1/A
Chunk 233
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ing 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:

| ● | the U.S. Holder’s gain or excess                                                                                
 distribution will be allocated ratably over the U.S. Holder’s holding period for the ordinary shares or rights; |

| ● | the amount allocated to the U.S. Holder’s                                                                                            
 taxable year in which the U.S. Holder recognized the gain or received the excess distribution, or to the period in the U.S. Holder’s 
 holding period before the first day of our first taxable year in which we are a PFIC, will be taxed as ordinary income;              |

| ● | the amount allocated to other taxable                                                                                             
 years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed at the highest tax rate in effect 
 for that year and applicable to the U.S. Holder; and                                                                              |

| ● | an additional tax equal to the interest                                                                                             
 charge generally applicable to underpayments of tax will be imposed on the U.S. Holder with respect to the tax attributable to each 
 such other taxable year of the U.S. Holder.                                                                                         |

In general, if we are determined to be a PFIC, a
U.S. Holder may avoid the PFIC tax consequences described above in respect to our ordinary shares (but possibly not our rights) by making
a timely and valid QEF election (if eligible to do so) to include in income its pro rata share of our net capital gains (as long-term
capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not