Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 343

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 343
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 the pre-QEF
election period.

Alternatively, if a U.S. holder,
at the close of its taxable year, owns shares in a PFIC that are treated as marketable stock, the U.S. holder may make a mark-to-market
election with respect to such shares for such taxable year. If the U.S. holder makes a valid mark-to-market election for the first taxable
year of the U.S. holder in which the U.S. holder holds (or is deemed to hold) ordinary shares in us and for which we are determined to
be a PFIC, such holder generally will not be subject to the PFIC rules described above in respect to its ordinary shares. These amounts
of ordinary income would not be eligible for the favorable tax rates applicable to qualified dividend income or long-term capital gains.
Instead, in general, the U.S. holder will include as ordinary income each year the excess, if any, of the fair market value of its ordinary
shares at the end of such taxable year over the adjusted basis in its ordinary shares. The U.S. holder also will be allowed to take an
ordinary loss in respect of the excess, if any, of the adjusted basis of its ordinary shares over the fair market value of its ordinary
shares at the end of its taxable year (but only to the extent of the net amount of previously included income as a result of the mark-to-market
election). The U.S. holder’s basis in its ordinary shares will be adjusted to reflect any such income or loss amounts, and any
further gain recognized on a sale or other taxable disposition of the ordinary shares will be treated as ordinary income. Currently,
a mark-to-market election may not be made with respect to warrants.

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 NYSE (on which we expect to list the ordinary shares), or on a non-U.S.
exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair
market value. If made, a mark-to-market election would be effective for the taxable year for which the election was made and for all
subsequent taxable years unless the ordinary shares cease to qualify as “marketable stock” for purposes of the PFIC rules
or the IRS consented to the revocation of the election. U.S. holders should consult their own tax advisors regarding