Company: CRAC
Filing Date: 2025-07-16
Form Type: S-1/A
Source: 0001213900-25-064764
Chunk: 277

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-07-16
Form: S-1/A
Chunk 277
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 holder must make its own determination of such value based on all the facts and circumstances. A holder’s initial tax basis in the Class A ordinary share and the Share Right included in each unit should equal the portion of the purchase price of the unit allocated thereto. Any disposition of a unit should be treated for U.S. federal income tax purposes as a disposition of the Class A ordinary share and the one -seventhof one Share Right comprising the unit, and the amount realized on 171 the disposition should be allocated between the Class A ordinary share and the Share Right based on their respective relative fair market values at the time of disposition. The separation of the Class A ordinary share and the Share Right comprising a unit should not be a taxable event for U.S. federal income tax purposes. The foregoing treatment of our Class A ordinary shares and Share Rights and a holder’s purchase price allocation are not binding on the IRS or the courts. Because there are no authorities that directly address instruments that are similar to the units, no assurance can be given that the IRS or the courts will agree with the characterization described above or the discussion below. Accordingly, each holder is advised to consult its own tax advisor regarding the tax consequences of and the risks associated with an investment in a unit (including alternative characterizations of a unit and allocation of the purchase price between the Class A ordinary share and the one -seventhof one Share Right that comprise a unit). The balance of this discussion assumes that the characterization of the units described above is respected for U.S. federal income tax purposes. U.S. Holders Taxation of Distributions Subject to the passive foreign investment company, or PFIC, rules discussed below, a U.S. Holder generally will be required to include in gross income, in accordance with such U.S. Holder’s method of accounting for U.S. federal income tax purposes, as foreign source dividends the amount of any distribution of cash or other property (other than certain distributions of our shares or rights to acquire our shares) paid on our Class A ordinary shares to the extent the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Such dividends paid by us will be taxable to a corporate U.S. Holder at regular rates and will not be eligible for the dividends -receiveddeduction generally allowed to domestic corporations in respect of dividends received from other domestic corporations. Subject to the PFIC rules discussed below, distributions in excess of such earnings and profits generally will be applied against and reduce the U.S. Holder