Company: BACC
Filing Date: 2025-03-26
Form Type: DRS
Source: 0001185185-25-000217
Chunk: 282

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-03-26
Form: DRS
Chunk 282
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 a PFIC, will be taxed as ordinary income;                                                                 |

| ● | the                                                                                                                                  
 amount allocated to each other taxable year (or portion 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 without regard to the U.S. Holder’s                
 other items of income and loss for that year; and                                                                                    |

| ● | an                                                                                                                                  
 additional amount 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 be able to avoid the PFIC tax consequences described above in respect to our Class A ordinary shares (but, under current law, not the Share Rights as discussed below) 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 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.

If a U.S. Holder makes a QEF election with respect to its Class A ordinary shares in a year after our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Class A ordinary shares, then notwithstanding such QEF election, the excess distribution rules discussed above, adjusted to take into account the current income inclusions resulting from the QEF election, will continue to apply with respect to such U.S. Holder’s Class A ordinary shares, unless the U.S. Holder makes a purging election under the PFIC rules. Under one type of purging election, the U.S. Holder will be deemed to have sold such Class A ordinary shares at their fair market value and any gain recognized on such deemed sale will be treated as an excess distribution, as described above. As a result of such purging election, the U.S. Holder will have additional basis (to the extent of any gain recognized on the deemed sale