Company: QSEA
Filing Date: 2025-03-11
Form Type: S-1/A
Source: 0001829126-25-001676
Chunk: 234

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-11
Form: S-1/A
Chunk 234
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 distributed, in the
taxable year of the U.S. Holder in which or with which our taxable year ends. A U.S. Holder generally may make a separate election to
defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be subject to
an interest charge. In the alternative, a U.S. Holder may avoid the PFIC tax consequences described above by making a “mark-to-market”
election. The QEF election and mark-to-market election are described further below.

The treatment of the rights to acquire our ordinary
shares is unclear. For example, 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, that would reach different conclusions regarding the tax treatment of the rights under the PFIC rules. In any case, depending
on which characterization is successfully applied to the rights, different PFIC consequences may result for U.S. Holders of the rights.
It is also possible that a U.S. Holder of rights would not be able to make a QEF or mark-to-market election (discussed below) with respect
to such U.S. Holder’s rights. Due to the uncertainty of the application of the PFIC rules to the rights, all potential investors
are strongly urged to consult with their own tax advisors regarding an investment in the rights offered hereunder as part of the units
offering and the subsequent consequences to holders of such rights in any initial business combination.

The QEF election is made on a shareholder-by-shareholder
basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes a QEF election by attaching a completed
IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including the
information provided in a PFIC annual information statement, to a timely filed United States federal income tax return for the tax year
to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement with such return
and if certain other