Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 338

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 338
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 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 assets giving rise to passive income.

Because we are a blank
check company, with no current active operating business, we believe that it is likely that we will meet the PFIC asset or income test
for periods prior to the acquisition of a company or assets in a business combination. Pursuant to a start-up exception, however, a corporation
will not be a PFIC for the first taxable year the corporation has gross income (the “start-up 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 start-up year; and (3) the corporation is not in fact a PFIC for either of those years. The applicability of the start-up
exception to us will not be known until after the close of our current taxable year ending December 31, 2025 and, possibly not until
after the close of our two taxable years following our start-up year (within the meaning of the exception). 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 start-up exception and will be a PFIC since our
inception. Our actual PFIC status for our current taxable year or any subsequent taxable year, however, will not be determinable until
after the end of such taxable year (and, in the case of the start-up exception to our current taxable year, perhaps not until after the
end of our two taxable years following our start-up year). Accordingly, there can be no assurance with respect to our status as a PFIC
for our current taxable year ending December 31, 2025 or any future taxable year.

Although our PFIC status is determined
annually, an initial determination that our company is a PFIC will generally apply for subsequent years to a U.S. holder who held (or
is deemed to have held) ordinary shares or rights while we were