Company: QSEA
Filing Date: 2025-03-11
Form Type: S-1/A
Source: 0001829126-25-001676
Chunk: 227

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-11
Form: S-1/A
Chunk 227
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 initial tax basis in such share and right, respectively.
Any disposition of a unit should be treated for U.S. federal income tax purposes as a disposition of the one ordinary share and one right
comprising the unit, and the amount realized on the disposition should be allocated among one ordinary share and one right based on their
respective relative fair market values at the time of disposition. Neither the separation of the ordinary shares and rights constituting
a unit nor the combination of fractions of rights into a single right should be a taxable event for U.S. federal income tax purposes.

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The
foregoing treatment of the ordinary shares and rights and a holder’s purchase price
allocation are not binding on the IRS or the courts. Because there are no authorities that
directly address instruments that are similar to the units, no assurance can be given that
the IRS or the courts will agree with the characterization described above or the discussion
below. Accordingly, each prospective investor is urged to consult its tax advisor regarding
the tax consequences of an investment in a unit (including alternative characterizations
of a unit). The balance of this discussion assumes that the characterization of the units
described above is respected for U.S. federal income tax purposes.

U.S. Holders

Taxation of Distributions

If we pay distributions in cash or other property
(other than certain distributions of our stock or rights to acquire our stock) to U.S. Holders of our ordinary share, such distributions
will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits,
as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will
constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted tax basis
in our ordinary share. Any remaining excess will be treated as gain realized on the sale or other disposition of the ordinary shares
and will be treated as described under “U.S. Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition
of Our Ordinary Shares and Rights” below.

Dividends we pay to a corporate U.S. Holder generally
will qualify for the dividends received deduction if certain holding period requirements are met. With certain exceptions (including,
but not limited to, dividends treated as investment income for purposes of investment interest deduction limitations), and provided certain
holding period requirements are met,