Company: TACOW
Filing Date: 2025-04-09
Form Type: S-1/A
Source: 0001829126-25-002484
Chunk: 279

Company: Berto Acquisition Corp.
Filing Date: 2025-04-09
Form: S-1/A
Chunk 279
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 Code) have authority to control all substantial decisions of the trust or (ii) it has a valid election in effect under Treasury 
 Regulations to be treated as a United States person.                                                                                   |

Taxation of Distributions

Subject to the passive foreign
investment company (“PFIC”) rules discussed below, a U.S. Holder generally will be required to include in gross income as
a dividend in the year actually or constructively received by the U.S. Holder the amount of any distribution of cash or other property
(other than certain distributions of our shares or rights to acquire our shares) paid on our ordinary shares to the extent the distribution
is paid out of our current or accumulated earnings and profits (as determined under United States federal income tax principles). Distributions
in excess of such earnings and profits generally will be treated as (i) a nontaxable return of capital, applied to reduce a U.S. Holder’s
basis in its ordinary shares (but not below zero) and (ii) to the extent of any remaining excess, gain from the sale or exchange of such
ordinary shares (the treatment of which is described under “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Ordinary Shares and Warrants” below).

Dividends paid by us will be
taxable to a corporate U.S. Holder at regular rates and will not be eligible for the dividends-received deduction generally allowed to
domestic corporations in respect of dividends received from other domestic corporations. With respect to non-corporate U.S. Holders,
dividends paid by us generally will be taxed at the lower applicable long-term capital gains rate (see “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Ordinary Shares and Warrants” below) only if our ordinary shares
are readily tradable on an established securities market in the United States, we are not a PFIC at the time the dividend was paid or
in the previous year, and certain other requirements are met. It is unclear, however, whether certain redemption rights described in
this prospectus may suspend the running of the applicable holding period of the ordinary shares for this purpose. U.S. Holders should
consult their own tax advisors regarding the availability of such lower rate for any dividends paid with respect to our ordinary shares.

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

Subject to the PFIC rules