TORONTO, March 30, 2021 /CNW/ — Aberdeen Asia-Pacific Income Investment Company Limited (TSX:FAP) (the “Company“), a closed-end investment company trading on the Toronto Stock Exchange, announced today that an annual general and special meeting (the “Meeting“) of the shareholders of the Company (“Shareholders“) will be held on April 22, 2021.
In addition to the election of directors and the appointment of auditors, at the Meeting, Shareholders will be asked to approve the re-domiciliation of the Company (the “Re-domiciliation“) from Cook Islands to Singapore, along with certain other changes considered ancillary, necessary or desirable, to facilitate and implement the Re-domiciliation. Upon the effective date of the Re-domiciliation, the Company will be named “Aberdeen Asia-Pacific Income Fund VCC”.
The Board has fixed the close of business on March 18, 2021 as the record date for the determination of Shareholders entitled to notice of and to vote at the Meeting and at any adjournment of the Meeting. Approval of the special resolution of the Shareholders authorizing the Re-domiciliation will require the affirmative vote of at least 75% of the total votes of the Shareholders present or represented by proxy at the Meeting.
If approved by the Shareholders at the Meeting, the Company will target completion of the Re-domiciliation in fiscal Q4 of 2021 and, in any event, prior to November 1, 2021, subject to obtaining the required regulatory approvals.
Background of the Proposed Singapore Re-Domiciliation
In December 2019, Cook Islands legislation came into force (the “Cook Islands Legislation“) removing the Cook Islands tax exemption for companies, including the Company, incorporated under the International Companies Act, 1981-1982 (Cook Islands). Once in force with respect to the Company, the Company will be subject to the Cook Islands domestic company tax regime and a tax on company profit of 20%. The Company will, in the absence of taking steps to address the matter, become subject to the new Cook Islands tax regime on November 1, 2021 (being the start of the Company’s 2022 fiscal year).
In response to the Cook Islands Legislation, the Board commenced a review to determine what action should be taken by the Company. Having concluded that remaining domiciled in the Cook Islands was not in the best interests of the Company, the Board oversaw an investigation by Aberdeen Standard Investments Inc. (“ASII“), the sub-administrator of the Company, and outside advisors as to whether the Company should re-domicile in another jurisdiction. ASII and the Chair of the Board met on multiple occasions to discuss a proposed re-domiciliation and focused their investigation on four jurisdictions: Bermuda, Canada, the Cayman Islands and Singapore.
During the course of its investigation, the Board learned that in January 2020, Singapore introduced a new corporate structure for investment funds called a variable capital company (“VCC“). The framework permits existing investment funds to re-domicile by transferring their registration to Singapore as VCCs.
Following the Board’s analysis, the Board concluded that re-domiciling to Singapore as a VCC under the Variable Capital Companies Act 2018 (No. 44 of 2018) (Singapore) (the “VCC Act“) is in the best interest of the Company. The Company proposes to transfer the domicile of the Company by way of de-registration in the Cook Islands and registration in Singapore as a VCC under the VCC Act.
In proposing the Re-domiciliation, the Board considered a variety of factors in coming to its determination that re-domiciling to Singapore is in the best interest of the Company, including, among other things, the following factors:
remaining domiciled in the Cook Islands beyond November 1, 2021 would subject the Company to a tax on company profit of 20%, thereby negatively affecting the returns to Shareholders;
Singapore is a party to over 80 double tax treaties, many of which include countries in which the Company currently invests, and the Company intends to be controlled and managed from Singapore such that the Company is able to apply Singapore’s double tax treaties;
the Company intends to continue to be managed by Aberdeen Standard Investments (Asia) Limited (“ASIAL“) in Singapore and to seek a tax exemption such that “specified income” derived from “designated investments” by the Company should be exempt from income tax in Singapore . The Company expects that it will meet the necessary conditions to rely on the tax exemption;
the Re-domiciliation will not result in any express or deemed exchange, disposition, redemption, cancellation or re-issuance of the outstanding ordinary shares of the Company under the corporate legislation of either the Cook Islands or Singapore;
the Re-domiciliation will not constitute a disposition of property for purposes of the Income Tax Act (Canada) and, accordingly, will not give rise to a capital gain or capital loss for Canadian resident Shareholders;
the Shares would remain eligible for Canadian registered plans (e.g. Canadian registered retirement savings plans and tax free savings accounts);
ASIAL, the current investment manager of the Company, operates in Singapore and has the capacity to assist the Company with its qualification and on-going administration as a VCC under the VCC Act; and
Singapore is located in the Asia-Pacific region that is the focus of the Company’s investment portfolio.
There will be no increase to the combined management and administration fees charged to the Company in connection with the Re-domiciliation, but such combined fees may be allocated differently amongst the Company’s service providers.
All costs incurred in connection with the Re-domiciliation, including with respect to the Meeting, will be borne by the Company. Such costs include, but may not be limited to, VCC filing fees and the fees and expenses of legal counsel, tax advisors, accountants, administrators and other service providers in Canada, the Cook Islands and Singapore.
Further particulars of the Re-domiciliation will be set forth in the management information circular for the Meeting that will be prepared and delivered to Shareholders in connection with the Meeting and will be available under the Company’s profile on SEDAR at www.sedar.com.
Shareholder Questions or Voting Assistance
The Company has engaged Laurel Hill Advisory Group (“Laurel Hill“) as proxy solicitation agent for the Meeting.
Shareholders who have questions about the meeting resolutions or require voting assistance may contact the Company’s solicitation agent, Laurel Hill Advisory Group.
Laurel Hill Advisory Group
North America Toll Free: 1-877-452-7184
Outside North America: 1-416-304-0211
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of future financial performance and condition of the Company, are factors and assumptions which, although considered reasonable by the Company, the Administrator, ASII, and/or ASIAL, as applicable, at the time of preparation, may prove to be incorrect. Shareholders are cautioned that actual results are subject to a number of risks and uncertainties, including the completion of the proposed Re-domiciliation and the anticipated benefits of the Re-domiciliation and the timing of the Meeting, general economic and market factors, including credit, currency, political and interest-rate risks and could differ materially from what is currently expected. The Company has no specific intention of updating any forward-looking information whether as a result of new information, future events or otherwise.
If you wish to receive this information electronically, please contact Investor.Relations@aberdeenstandard.com
SOURCE Aberdeen Asia-Pacific Income Investment Company Limited
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2021/30/c8134.html
British Columbia tackles innovation investment gap – The Globe and Mail
The B.C. government will create its own investment fund to help promising B.C. companies scale up and keep jobs here at home, as part of its post-pandemic recovery plan.
The InBC strategic investment fund, announced in Monday’s Throne Speech, will be administered by a new Crown corporation. The initiative is designed to respond to concerns that the province’s world-leading innovations in sectors such as life sciences are consistently flowing to other jurisdictions with better investment climates.
The Throne Speech, read by Lieutenant-Governor Janet Austin, offers a self-congratulatory account of the government’s response to the health and economic challenges brought by COVID-19 over the past year, and acknowledges that the province is still in the grips of the pandemic. But it also focuses on plans to rebuild the economy.
“We open this sitting of the legislature at a turning point in our fight to end the pandemic,” she read. “The threat of new variants means we cannot relax, even as your government accelerates the largest mass-immunization program in B.C.’s history.”
Ms. Austin cited the province’s contributions to the global effort to fight COVID-19, noting that its life-sciences companies have helped develop a vaccine and a treatment for the virus, as well as the development of an ICU ventilator for use in Canadian hospitals.
“Their work will not only help bring us out of the pandemic, it will position our province for success in the years ahead,” she said.
The speech predicts the province will find continued growth in trade. “Global markets are changing in ways that offer significant opportunities for B.C.’s goods and services. Prices are expected to continue to reflect environmental, social and governance aspects of production,” it states. “British Columbia firms will be able to take advantage of a premium paid for inclusive and sustainable products.”
But leaders in health sciences and the high-tech sectors have noted that B.C., while it excels in research and development, fails to foster a business environment where those innovations can stay and grow.
Quebec and Ontario have helped secure life sciences investments by partnering with Ottawa to offer incentives. Most recently, the global pharmaceutical giant Sanofi unveiled its plans to build an influenza vaccine manufacturing facility in Toronto, after the federal government and the province of Ontario committed to invest close to half a billion dollars in the project.
The B.C. government provided no detail on the new investment fund on Monday, and it is unclear how the new agency will assist. “This new strategic fund will help promising B.C. companies scale up, anchor talent – keeping jobs and investment at home in British Columbia,” it reads.
It also promises additional funding to address the challenges that COVID-19 has exposed for the homeless, for health care and for seniors in long-term care. “In the year ahead, your government will continue to improve care for seniors by hiring thousands of new workers for long-term care and fixing the cracks COVID-19 has exposed.”
The Throne Speech also promises initiatives to assist British Columbians who struggle with the cost of living. The budget, which will be introduced on April 20, will include funds to help get thousands of rental homes built throughout the province, and will expand access to the province’s $10-a-day daycare spaces.
The government is also promising changes to its vehicle insurance rates through the Insurance Corporation of B.C. ICBC will deliver a 20-per-cent cut to car insurance rates, in addition to the COVID-19 rebate that was issued earlier this year.
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eBay Is Helping Gen-Y and Gen-Z Get Their Investment Kicks
At a time when Sotheby’s is auctioning off rare sneakers, you know the nature of investing has changed. Those changes are coming as Generations Y and Z are looking to invest in what they love, while changing the nature of what investment-grade goods look like.
eBay, for one has been leading the charge and looks to remain the go-to agent for its monetization. And, to combat counterfeiting while supporting the segment’s growth, the online marketplace is innovating. eBay has begun a series of pop-up authentication events, intended to give their collectors and sellers a new source to both authenticate and value their rare kicks, as well as high-end watches, and collector cards.
Sneakers and watches are two of eBays most popular luxury categories. There are more than a half-million sneaker listings on eBay, and over 165,00 luxury watches listed on any given day. And over the past year the marketplace saw a 10 percent increase for high-end time pieces like Rolex, whose sales have jumped 60 percent since 2019.
The on-site authentication events are an extension of the recently expanded “Authentication Guarantee” services that eBay offers, utilizing an independent team of industry experts. It’s the same group that authenticated a $1 million pair of 1985 Air Jordon 1’s, signed by non-other than the “Air-apparent” himself.
The program first launched in LA’s Koreatown, back in November 2020 in a vintage, fifties-looking converted gas station. Participants handed the goods off to an attendant, who brought the items in to the inspection teams. The process was in full view via large outside screens, and successful assessments earned an eBay Authentication Guarantee. Participants were able to receive “on the spot” offers or elected to list the items themselves.
The East-Hollywood, LA experiment was successful enough to replicate. And pop-up authentication events took place this past Friday and Saturday in Atlanta. They are expected to again be replicated in Las Vegas, Seattle, Nashville, and Austin in coming weeks. Admissions to the events are free, without an appointment.
Playing A New Card
In a parallel effort, by late April eBay will add an imaging listing tool to its mobile app, designed to facilitate more efficient listings of trading cards. This is another category that has evolved from mere collecting to high-buck investing.
Beginning in late April 2021, eBay plans to launch an image listing tool in its mobile app to initially support Magic the Gathering cards and ultimately Pokémon and Yu-Gi-Oh! as well. Users will point their camera at the card and hold to scan. A list of possible matches will pop-up, along with details on game name, title, card set, number and rarity. After tapping the closest match, the user can add their details and pricing to post. eBay plans to add other collectable and trading cards to the offering later in 2021.
Source: – Forbes
Joe Biden tax plan affect US investment in Ireland?
Wander around Dublin’s Grand Canal Quay and you get a sense of how successful the Republic of Ireland has been in attracting US technology companies.
Google has its international headquarters across a campus of offices and will soon have more space nearby at the Boland’s Mill development.
Just across the canal, Facebook has its international HQ with Tripadvisor and AirBnB close by.
Stripe, the United States-based payments firm, could soon be in the area.
Last month its Irish founders said they’re planning about 1,000 new jobs in Ireland.
The head of the country’s inward investment agency, Martin Shanahan, described the Stripe investment as a “phenomenal signal from Ireland and about Ireland”.
But there’s now a risk that the pipeline of investment from the US could dry up if President Joe Biden can lead a major change to global tax rules.
Irish tax advantage under threat
In among those tech company HQs in Dublin’s docklands, you will also find the offices of the lawyers and accountants who help US firms use Ireland’s tax system to reduce their global tax bills.
For the last 20 years Ireland has had a simple message: invest here and you will pay just 12.5% tax on your Irish profits.
That compares favourably to headline corporation tax rates of 19% in the UK, 30% in Germany and 26.5% in Canada.
It is an article of faith in Irish politics that the 12.5% rate has been vital to attracting US investment.
But that tax advantage could be seriously undermined if President Biden gets his way.
The most striking of his proposals – and the one of most consequence for Ireland – is for a global minimum corporate tax rate.
The US Treasury Secretary Janet Yellen has suggested a 21% minimum rate.
“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom,” she said in a speech last week.
“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations.”
What would it mean for Ireland’s economy?
Essentially that would mean if a company paid tax at the lower Irish rate, then the US (or other countries) could top up that company’s tax in their jurisdiction to get it to the global minimum.
So if a US company had a presence in Ireland primarily for the tax advantage, that advantage would disappear.
This is a matter of urgency for the Biden administration because it is planning to raise corporate taxes at home and would prefer not to see more tax revenues leaking to other countries.
Peter Vale, tax partner with accounting firm Grant Thornton in Dublin, thinks a global minimum rate is now an inevitability.
“If you’d asked me six months ago I’d have been quite sceptical, there was a lot of opposition,” he said.
“But it’s now moving by the day and, with the US behind it with its plans, I think we’re going to arrive at some sort of global consensus.”
He said the key issue for Ireland becomes the level at which the rate is set.
“I don’t think 21% is where it will land, I suspect it will be somewhere in the teens.”
Other details will be important too: “Exactly how will you work out what the rate is a company is paying in Ireland and what does that mean in terms of any top up? The detail becomes pretty critical.”
The Biden proposals have reinvigorated work which is being led by the OECD (Organisation for Economic Co-operation and Development), an intergovernmental economic organisation.
It began a project known as Base Erosion and Profit Shifting (BEPS) in 2013, which aims to mitigate tax loopholes which currently allow companies to shift profits from higher tax countries to lower tax countries like Ireland.
‘Intention to target Ireland’
Perhaps ironically Ireland appears to have been a major beneficiary of some of the early outcomes of the BEPS project.
The country’s corporation tax receipts have soared from about €4bn (£3.5bn) in 2013 to around €12bn (£10.5bn) in 2020.
Seamus Coffey, an expert in Irish corporation tax, told the At the Margin podcast that this was because of the focus on what is known as “substance”.
That is the principle that companies should declare their profits in the location where they have real operations or activities.
“Countries like Ireland have been a huge winner from BEPS mark one,” he said.
“The objective was to align profit with substance and we actually are one of the countries where these companies have substance, whether it be pharmaceuticals, computer chips, medical devices and the ICT companies.
“I think when countries in the G7 looked at this they thought ‘that’s not quite what we wanted’ – maybe the intention was to target countries like Ireland, not benefit them.”
When could we see an impact?
In the next round of BEPS, with the US on board, those other rich countries are more likely to get what they want at Ireland’s expense.
But even if President Biden can agree the reforms at home and abroad, how quickly would that have an impact in Ireland?
Mr Coffey thinks any negative effects would not be instant because tax is not everything.
“Are the ICT companies likely to head off around the world, scattering their headquarters to various different cities?” he said.
“There are benefits to being co-located. At least in the medium term we are not likely to see a huge shock.”
That is echoed by the IDA (Industrial Development Authority), the inward investment agency, which points to Ireland’s workforce and significant clusters of specialisation in areas like medical technology and pharmaceuticals.
The IDA also sees the Brexit angle, pointing out that Ireland, unlike its UK neighbour, is part of the EU’s single market.
In a statement, it said: “Ireland is at the heart of Europe. Ireland’s continued commitment to the EU is a core part of Ireland’s value proposition to foreign investors, offering a base to access the European Single Market and to grow their business.
“Ireland also benefits from free movement of people within the EU, giving businesses located in Ireland access to a European labour market.”
The Irish government has been engaged in the BEPS process, though in a speech last year the Finance Minister, Pascal Donohoe, said he remained to be convinced of the need for minimum taxation, beyond the specific challenges relating to the digital economy.
This week a government spokesman said: “Ireland is aware of the US proposals.
“We are constructively engaging in these discussions, and will consider any proposals carefully noting that political level discussions on these issues have not yet taken place with the 139 countries involved in this process.”
Source: – BBC News
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