Company: TACOW
Filing Date: 2025-03-21
Form Type: S-1
Source: 0001829126-25-001978
Chunk: 287

Company: Berto Acquisition Corp.
Filing Date: 2025-03-21
Form: S-1
Chunk 287
---
 the requirements
of a QEF election, a U.S. Holder must receive a PFIC annual information statement from us. If we determine we are a PFIC for any taxable
year, upon written request, we will endeavor to provide to a U.S. Holder such information as the IRS may require, including a PFIC annual
information statement, in order to enable the U.S. Holder to make and maintain a QEF election, but there can be no assurance that we
will timely provide such required information. There also can be no assurance that we will have timely knowledge of our status as a PFIC
in the future or of the required information to be provided.

If a U.S. Holder has made a valid
QEF election with respect to our ordinary shares, and the excess distribution rules discussed above do not apply to such shares (because
of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) such shares or a
purge of the PFIC taint pursuant to a purging election, as described above), then any gain recognized on the sale of our ordinary shares
or warrants, as applicable, generally will be taxable as capital gain and no additional interest charge will be imposed under the PFIC
rules. As discussed above, if we are a PFIC for any taxable year, a U.S. Holder of our ordinary shares that has made a valid QEF election
will be currently taxed on its pro ratashare of our earnings and profits, whether or not distributed for such year. A subsequent
distribution of such earnings and profits that were previously included in a U.S. Holder’s income generally should not be taxable
when distributed to such U.S. Holder. The tax basis of a U.S. Holder’s shares in a QEF will be increased by amounts that are included
in income, and decreased by amounts distributed but not taxed as dividends, under the above rules. In addition, if we are not a PFIC
for any taxable year, such U.S. Holder will not be subject to the QEF inclusion regime with respect to our ordinary shares for such a
taxable year.

Alternatively, if a U.S. Holder,
at the close of its taxable year, owns shares in a PFIC that are treated as “marketable stock”, the U.S. Holder may make
a mark-to-market election with respect to such shares for such taxable year. If the U.S. Holder makes a