Company: TACOW
Filing Date: 2025-04-15
Form Type: S-1/A
Source: 0001829126-25-002650
Chunk: 134

Company: Berto Acquisition Corp.
Filing Date: 2025-04-15
Form: S-1/A
Chunk 134
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 repurchases of stock by “covered corporations” (which include publicly traded domestic
(i.e., U.S.) corporations and certain domestic subsidiaries of publicly traded foreign (i.e., non-U.S.) corporations) occurring on or
after January 1, 2023. The Excise Tax is imposed on the repurchasing corporation itself, not its holders from which the stock is
repurchased. The amount of the Excise Tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase.
However, for purposes of calculating the Excise Tax, repurchasing corporations are permitted to net the fair market value of certain
new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions
apply to the Excise Tax. The U.S. Department of the Treasury (the “Treasury”) has authority to provide regulations and other
guidance to carry out, and prevent the abuse or avoidance of the Excise Tax. On April 12, 2024, the Treasury published proposed
Treasury regulations addressing the Excise Tax. Such proposed Treasury regulations clarify many aspects of the Excise Tax, although the
interpretation and operation of certain other aspects of the Excise Tax remain unclear. Although these proposed Treasury regulations
are not final, taxpayers generally may rely on them until final Treasury regulations are issued. However, there can be no assurance that
final Treasury regulations will not adversely affect the accuracy of the below description of the Excise Tax considerations that may
be applicable to us if we were to become a “covered corporation” in the future.

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As a Cayman Islands exempted
company, we are currently not a “covered corporation” for purposes of the Excise Tax. Accordingly, we generally would not
be subject to the Excise Tax on a redemptions of our stock in connection with an extension of the date by which we must consummate our
initial business combination or in connection with our liquidation if we fail to consummate our initial business combination by such
date. If we were to become a “covered corporation” in the future, whether and to what extent we would be subject to the Excise
Tax on a redemption of our stock would depend on a number of factors, including (i) whether the redemption is treated as a repurchase
of stock for purposes of the Excise Tax, (ii) the fair market value of the redemption treated