Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 239

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 239
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, and any further gain recognized on a sale or other taxable disposition of its ordinary shares will be treated
as ordinary income. Currently, a mark-to-market election possibly may not be made with respect to our rights.

The mark-to-market election is available only for
“marketable stock,” generally, stock that is regularly traded on a national securities exchange that is registered with the
Securities and Exchange Commission, including Nasdaq (on which we intend to list the ordinary shares), or on a foreign exchange or market
that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. U.S.
Holders should consult their own tax advisors regarding the availability and tax consequences of a mark-to-market election in respect
to our ordinary shares under their particular circumstances.

If we are a PFIC and, at any time, have a foreign
subsidiary that is classified as a PFIC, U.S. Holders generally would be deemed to own a portion of the shares of such lower-tier PFIC,
and generally could incur liability for the deferred tax and interest charge described above if we receive a distribution from, or dispose
of all or part of our interest in, the lower-tier PFIC or the U.S. Holders otherwise were deemed to have disposed of an interest in the
lower-tier PFIC. We will endeavor to cause any lower-tier PFIC to provide to a U.S. Holder the information that may be required to make
or maintain a QEF election with respect to the lower-tier PFIC. There can be no assurance that we will have timely knowledge of the status
of any such lower-tier PFIC. In addition, we may not hold a controlling interest in any such lower-tier PFIC and thus there can be no
assurance we will be able to cause the lower-tier PFIC to provide such required information. U.S. Holders are urged to consult their
tax advisors regarding the tax issues raised by lower-tier PFICs.

A U.S. Holder that owns (or is deemed to own) shares
in a PFIC during any taxable year of the U.S. Holder, may have to file an IRS Form 8621 (whether or not a QEF or mark-to-market election
is made) and such other information as may be required by the U.S. Treasury Department. Failure to do so, if required, will extend the
statute of limitations until such required information is furnished to the IRS.

The
rules dealing with PFIC