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Re: [board-discuss] Agenda for TDF board meeting on Friday, August 14th at 1300 Berlin time (UTC+2)



Hi,

Regarding setting up in Canada:

Reading through this article will tell you everything you need to know regarding entities, tax, and 
liability implications: 
https://uk.practicallaw.thomsonreuters.com/9-564-0499?transitionType=Default&contextData=(sc.Default)&firstPage=true

I think Telesto raises some strong points against setting up in Canada; The ones that resonated 
with me were related to the geographic separation of board directors and the ability and 
familiarity with Canadian law. Unless you have a Canadian board member or TDF or TDC employee 
domiciled in Canada, it will be difficult to go through bureaucratic processes in the country. 
There are also nuances to Canadian law and culture that may seem a bit confusing or backwards 
compared to say, the Netherlands or another European country.

Consider this example; in the Netherlands, a Digital ID system is in place that allows for board 
members to sign documents electronically from anywhere in the world, which significantly speeds up 
the process of making decisions and getting government approval on forms, changes, etc. In Canada, 
we are still debating how a national Digital ID system will be implemented (it's at least 2-3 years 
out). Currently in many provinces they still require you to fax or mail-in documentation. I tried 
to email a scanned PDF once and my provincial business registrar refused to accept it. The TDF 
would have to weigh bureaucratic inefficiencies and the time to resolve them with the overall tax 
savings (which, I do not know what the tax comparison between Canada and an EU tax-haven like 
Luxembourg would be.)

Geopolitically I also see LibreOffice as being a European-based project; and as such with the 
unfortunate impending balkanization of technology to geographic  spheres, European government 
support of LibreOffice may increase if any perceived corporation headquarters (despite it being 
owned by the TDF -- because headquarters seems to be the only metric policymakers care about 
anymore) is domiciled in the EU rather than Canada. Canada is also heavily lobbied by Microsoft for 
government contracts and if there are future inroads being made by LibreOffice into Microsoft's 
cash cow product, I wouldn't be surprised to see speedbumps from the Canadian bureaucrats impeding 
TDC initiatives. I personally believe positioning LibreOffice as a made-in-Europe solution could 
lead to government grants and more support contracts, but this would require the TDF/TDC/Enterprise 
Stakeholders to commission a government relations firm to advocate on LibreOffice's behalf, or to 
engage in a grassroots campaign
  with LibreOffice users to raise awareness with local politicians (a tall order for something most 
people don't think about regularly).

If you did want to proceed with setting something up in Canada then following the rules in the link 
above will cover your bases, but I would still recommend speaking to a Canadian lawyer who 
specializes in taxes and incorporation. I do know of a few that I can introduce the board to if 
they want to seriously consider this route. IMO it wouldn't be worth it - though I don't have 
complete information on the financial benefits of doing so vs. using a European country.

Context


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