Niocorp Developments Ltd (NB)

[The_Gman]

A foreign corporation is a deemed passive foreign investment company (PFIC) if 75% or more of its gross income is from non-business operational activities (the income test).
Or, if it has at least 50% of its average percentage of assets held for the production of passive income (the asset test).
PFICs are subject to strict and extremely complicated tax guidelines by the Internal Revenue Service.
U.S. investors who own shares of a PFIC must file IRS Form 8621.
Identifying holdings in PFICs closes tax loopholes that allowed some U.S. individuals to avoid taxation on that foreign income.

https://www.investopedia.com/terms/p/pfic.asp

As to the “ U.S. investors who own shares of a PFIC must file IRS Form 8621,” that’s gonna take a little more research!

Thanks for pointing that out.