Canadian Energy Firm To Redomicile To Jersey
by Jason Gorringe, Lowtax.net, London
01 February, 2018
Serinus Energy Inc. has announced that it is seeking shareholder approval to redomicile the corporation from the Canadian province of Alberta to Jersey, to reduce its exposure to taxation in Canada, where it has a minimal commercial presence.
A statement issued by the company on January 29 said that the move would bring it closer to its financing and other activities in Europe and its principal assets in Romania and Tunisia.
"Since the corporation has no active commercial connections to Canada, there is no reason for it to be domiciled there and thereby subject to Canadian income and capital gains taxes or for it to bear the compliance costs associated with being a Canadian taxpayer," the statement said.
Serinus intends to list on the London Stock Exchange's small cap Alternative Investment Market, and it stressed that a Jersey domicile would result in greater access to the European capital and debt markets for the corporation.
"European market investors are generally more familiar with Jersey companies and tax resident listed companies and are nearer to the Corporation's principal assets," the statement said.
The statement confirmed that if the redomicile is approved, it will cease to be governed by the corporate laws of Alberta, and no longer be domiciled in the province for legal and taxation purposes. Instead, the company would be governed by the corporate laws of Jersey, which would also be the location of its registered office.
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