Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 339

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 339
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 a PFIC, whether or not we meet the test for PFIC status in those subsequent
years. If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. holder
of our ordinary shares or warrants and, in the case of our ordinary shares, the U.S. holder did not make either a timely qualified electing
fund (“QEF”) election for our first taxable year as a PFIC in which the U.S. holder held (or was deemed to hold) ordinary
shares or a valid “mark-to-market” election, in each case as described below, such 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 warrants;
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 shares).

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 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;             |

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| ● | 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                                                                                                            |

| ● | the interest charge generally applicable to underpayments                                                     
 of tax will be imposed in respect of 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 will avoid the PFIC tax