Burger King in Talks to Buy Tim Hortons in Canada Tax Deal
Burger King Worldwide Inc. is in talks to buy Canadian coffee-and-doughnut chain Tim Hortons Inc., a deal that would be structured as a so-called tax inversion and move the hamburger seller’s base to Canada. The two sides are working on a deal that would create a new company, the companies said. The takeover would create the third-largest quick-service restaurant provider in the world, they said.
Inversion deals have been on the rise lately, and are facing stiff opposition in Washington given that they threaten to deplete U.S. government coffers. A move by Burger King to seal one is sure to intensify criticism of them, since it is such a well-known and distinctly American brand.
By moving to a lower-tax jurisdiction, inversion deals enable companies to save money on foreign earnings and cash stowed abroad, and in some cases lower their overall corporate rate. Even though many of the headline-grabbing inversion deals of late have involved European companies, Canada has also been the focal point for a number of them, given its proximity and similarity to the U.S. Canada’s federal corporate tax rate was lowered to 15% in 2012.
Valeant Pharmaceuticals International Inc., which had been based in California, combined with Canada’s Biovail Corp. in 2010 and redomiciled in Canada. The company now has a tax rate less than 5%
Au Canada, Stephen Harper a baissé l’impôt des corporations de manière importante. Aux États-Unis, l’impôt des corporations est parmi les plus élevés des pays industrialisés et Barack Obama refuse de les baisser. Résultat, des compagnies, et des emplois, déménagent des États-Unis vers le Canada !
La prochaine fois qu’un gauchiste critiquera les baisses d’impôts de Stephen Harper, vous lui parlerez des emplois qui sont déménagés au Canada !