Company: CRAC
Filing Date: 2025-10-20
Form Type: POS462C
Source: 0001213900-25-100119
Chunk: 299

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-10-20
Form: POS462C
Chunk 299
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, we believe that it is likely that we will meet the PFIC asset or income test for our current taxable year. However, pursuant to a start -upexception, a corporation will not be a PFIC for the first taxable year the corporation has gross income (the “start -upyear”), 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 -upyear; and (3) the corporation is not in fact a PFIC for either of those years. The applicability of the start -upexception to us will not be known until after the close of our current taxable year and, possibly, after the close of two subsequent taxable years. 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 -upexception and will be a PFIC for our current taxable year. Our actual PFIC status for our current taxable year or any future taxable year, therefore, will not be determinable until after the end of such taxable year. Accordingly, there can be no assurance with respect to our status as a PFIC for our current taxable year or any future taxable year. 182 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 Class A ordinary shares, warrants, or Share Rights and, in the case of our Class A ordinary shares, the U.S. Holder did not make either a timely qualified electing fund (“QEF”) election or a mark -to -marketelection, each as described below, for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Class A ordinary shares, such holder generally will be subject to special rules with respect to: •any gain recognized by the U.S. Holder on the sale or other disposition of its Class A ordinary shares, warrants, or Share Rights (which may include gain realized by reason of transfer of Class A ordinary shares, warrants, or Share Rights that would otherwise qualify as nonrecognition transactions for U.S. federal income tax purposes);