Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 321

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 321
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 can be no assurance
that we will have timely knowledge of the status of any such lower-tier PFIC. In addition, we may not hold a controlling interest
in any such lower-tier PFIC and thus there can be no assurance we will be able to cause the lower-tier PFIC to provide such required
information. A mark-to-market election generally would not be available with respect to such lower-tier PFIC. U.S. Holders
are urged to consult their tax advisors regarding the tax issues raised by lower-tier PFICs.

A U.S. Holder that owns (or is deemed to
own) shares in a PFIC during any taxable year of the U.S. Holder, may have to file an IRS Form 8621 (whether or not a QEF or
mark-to-market election is made) and such other information as may be required by the U.S. Treasury Department. Failure to do so,
if required, will extend the statute of limitations until such required information is furnished to the IRS.

The rules dealing with PFICs and with the
QEF, purging, and mark-to-market elections are very complex and are affected by various factors in addition to those described above.
Accordingly, U.S. Holders of our Class A ordinary shares and warrants should consult their own tax advisors concerning the
application of the PFIC rules to our Class A ordinary shares and warrants under their particular circumstances.

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Tax Reporting

Certain U.S. Holders may be required to
file an IRS Form 926 (Return by a U.S. Transferor of Property to a Foreign Corporation) to report a transfer of property (including
cash) to us. Substantial penalties may be imposed on a U.S. Holder that fails to comply with this reporting requirement, and the
period of limitations on assessment and collection of United States federal income taxes will be extended in the event of a failure
to comply. Furthermore, certain U.S. Holders who are individuals and certain entities will be required to report information with
respect to such U.S. Holder’s investment in “specified foreign financial assets” on IRS Form 8938 (Statement
of Specified Foreign Financial Assets), subject to certain exceptions. Specified foreign financial assets generally include any financial
account maintained with a non-U.S. financial institution and should also include our units, Class A ordinary shares and warrants
if they are not held in an account maintained with a U.S. financial institution. Persons who are required to