Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 293

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 293
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 the potential tax consequences of Section 367 of the Code as a result of the Domestication.

A U.S. Holder that on the day of the Domestication beneficially owns (directly, indirectly or constructively) (i) ten percent (10%) or
more of the total combined voting power of all classes of CSLM stock entitled to vote or (ii) ten percent (10%) or more of the total value of shares of all classes of CSLM stock (a “U.S. Shareholder”) must include in income as a
dividend the “all earnings and profits amount” attributable to the Public Shares it directly owns, within the meaning of Treasury

Regulation Section 1.367(b)-2(d). Complex attribution rules apply in determining whether a U.S.
Holder owns 10% or more of the total combined voting power of all classes of CSLM securities entitled to vote or 10% or more of the total value of shares of all classes of CSLM securities for U.S. federal income tax purposes, and all U.S. Holders
are urged to consult their tax advisors with respect to these attribution rules.

A U.S. Shareholder’s earnings and profits amount
with respect to its Public Shares is the net positive earnings and profits of the corporation (as determined under Treasury Regulation Section 1.367(b)-2(d)(2)) attributable to the Public Shares (as
determined under Treasury Regulation Section 1.367(b)-2(d)(3)) but without regard to any gain that would be realized on a sale or exchange of such Public Shares.

Accordingly, under Treasury Regulation Section 1.367(b)-3(b)(3), a U.S. Shareholder will be
required to include in income as a deemed dividend the earnings and profits amount (as defined in Treasury Regulation Section 1.367(b)-2(d)) with respect to its Public Shares as a result of the
Domestication. Any such U.S. Shareholder that is a corporation may, under certain circumstances, effectively be exempt from taxation on a portion or all of the deemed dividend pursuant to Section 245A of the Code. See “— Passive Foreign Investment Company Status” for a discussion of whether the amount of inclusion under Section 367(b) of the Code should be reduced by amounts required to be taken into account by a Non-
Electing Shareholder (as defined below) under the proposed Treasury regulations under Section 1291(f) of the Code.

A U.S. Holder that on the