Company: COPL-UN
Filing Date: 2025-02-03
Form Type: S-1/A
Source: 0001829126-25-000620
Chunk: 313

Company: Copley Acquisition Corp
Filing Date: 2025-02-03
Form: S-1/A
Chunk 313
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 purging election under the PFIC rules. One type of purging election creates a deemed sale of such shares at their fair market value. The gain recognized on account of such purging election will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. Under another type of purging election, an electing U.S. holder will be treated as having received as an excess distribution its ratable share of our earnings and profits determined for U.S. federal income tax purposes. In order for a U.S. holder to make the second election, we must also be a “controlled foreign corporation” as defined in the Code, and there are no assurances that we will so qualify. As a result of either purging election, the U.S. holder will have a new basis and holding period in the ordinary shares acquired upon the exercise of the warrants for purposes of the PFIC rules. U.S. holders are urged to consult their tax advisors as to the applicability of the rules governing purging elections to their particular circumstances.

The QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A U.S. holder generally makes a QEF election by attaching a completed IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including the information provided in a PFIC annual information statement, to a timely filed U.S. federal income tax return for the tax year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement with such return and if certain other conditions are met or with the consent of the IRS. U.S. holders should consult their own tax advisors regarding the availability and tax consequences of a retroactive QEF election under their particular circumstances.

In order to comply with the requirements of a QEF election, a U.S. holder must receive a PFIC annual information statement from us. Our U.S. counsel expresses no opinion with respect to our PFIC status for any taxable year and we have not made, nor do we intend to make, the analysis necessary to determine whether or not we are currently a PFIC or whether we have ever been a PFIC. However, if we do determine we are a PFIC for any taxable year, we will endeavor to provide to a U.S. holder, upon written request by such U.S. holder, such information as the IRS may require, including a PFIC