Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 230

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 230
---
 Accordingly, each prospective investor is urged to consult its tax advisor regarding
the tax consequences of an investment in a unit (including alternative characterizations
of 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

If we pay distributions in cash or other property
(other than certain distributions of our stock or rights to acquire our stock) to U.S. Holders of our ordinary share, such distributions
will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits,
as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will
constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted tax basis
in our ordinary share. Any remaining excess will be treated as gain realized on the sale or other disposition of the ordinary shares
and will be treated as described under “U.S. Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition
of Our Ordinary Shares and Rights” below.

Dividends we pay to a corporate U.S. Holder generally
will qualify for the dividends received deduction if certain holding period requirements are met. With certain exceptions (including,
but not limited to, dividends treated as investment income for purposes of investment interest deduction limitations), and provided certain
holding period requirements are met, dividends we pay to a non-corporate U.S. Holder will generally be taxed as qualified dividend income
at the preferential tax rate for long-term capital gains. It is unclear whether the redemption rights with respect to the ordinary shares
described in this prospectus may prevent a U.S. Holder from satisfying the applicable holding period requirements with respect to the
dividends received deduction or the preferential tax rate on qualified dividend income, as the case may be. If the holding period requirements
are not met, then a corporation may not be able to qualify for the dividends received deduction and would have taxable income equal to
the entire dividend amount, and non-corporate holders may be subject to tax on such dividend at regular ordinary income tax rates instead
of the preferential rate that applies to qualified dividend income.

Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Our Ordinary Shares and Rights

A U.S. Holder generally will recognize capital