Company: TACOW
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001829126-25-002771
Chunk: 288

Company: Berto Acquisition Corp.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 288
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 and gains from the disposition of assets giving rise to passive income.

Because we are a blank check
company, with no current active business, we believe that it is likely that we will meet the asset test or income test for our current
taxable year. However, pursuant to a startup exception, a corporation will not be a PFIC for the first taxable year that the corporation
has gross income (the “startup year”), if (1) no predecessor of the corporation was a PFIC; (2) the corporation establishes
to the satisfaction of the IRS that it will not be a PFIC for either of the first two taxable years following the startup year; and (3)
the corporation is not in fact a PFIC for either of the first two taxable years following the startup year. The applicability of the
startup exception to us is uncertain and will not be known until after the close of our current taxable year and, perhaps, until after
the end of our two taxable years following our startup year. 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 startup exception and will be a PFIC for our current taxable year. Our actual PFIC status for our
current taxable year or any subsequent taxable year will not be determinable until after the end of such taxable year (and, if the startup
exception is applicable to our current taxable year, perhaps until after the end of our two taxable years following our current 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. In addition, our U.S. counsel expresses no opinion with respect to our PFIC status for our current or future taxable years.

Although our PFIC status is determined
annually, an initial determination that our company is a PFIC generally will apply for subsequent years to a U.S. Holder who held ordinary
shares or warrants while we were a PFIC, whether or not we meet the test for PFIC status in those subsequent years. 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 ordinary shares