Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 322

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 322
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 business combination, impose fines and penalties,
limit our operations in the PRC, or take other actions that could materially adversely affect our business, financial condition, results
of operations, reputation and prospects, as well as the trading price of our securities.

Our company is a blank check company incorporated under the laws of
the Delaware. We currently do not hold any equity interest in any PRC company or operate any business in the PRC. Therefore, we are not
required to obtain any permission from any PRC governmental authorities to operate our business as currently conducted. If we decide to
consummate our initial business combination with a target business based in and primarily operating in the PRC, the combined company’s
business operations in the PRC through its subsidiaries, as applicable, are subject to relevant requirements to obtain applicable licenses
from PRC governmental authorities under relevant PRC laws and regulations.

58

Enhanced scrutiny over acquisition transactions by the PRC tax authorities
may have a negative impact on potential acquisitions we may pursue in the future.

The PRC tax authorities have enhanced their scrutiny
over the direct or indirect transfer of certain taxable assets, including, in particular, equity interests in a PRC resident enterprise,
by a non-resident enterprise. On February 3, 2015, the State Administration of Taxation, or SAT, issued the Bulletin on Issues of Enterprise
Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises, or Bulletin 7, which was formulated by SAT on the basis of
summing up the experience accumulated and problems existing in the implementation of the Notice on Strengthening Administration of Enterprise
Income Tax for Share Transfers by Non-PRC Resident Enterprises, or Circular 698, issued by the SAT, on December 10, 2009 by tax authorities
for more than five years. Pursuant to this Bulletin, an “indirect transfer” of assets, including equity interests in a PRC
resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct transfer of PRC taxable assets, if
such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding payment of PRC enterprise
income tax. As a result, gains derived from such an indirect transfer may be subject to PRC enterprise income tax. According to Bulletin
7, “PRC taxable assets” include assets attributed to an establishment in China, immoveable properties located in China, and
equity investments in PRC resident