The home of the Whopper is moving to Canada, but the
Miami-based corporation that brought you such savory selections as the chicken
fries (which is back by “popular” demand) did not decide to
relocate for the weather and the Mounties. Instead, Burger King is pursuing a
tax inversion, a process by which a domestic company merges with a foreign
corporation to relocate abroad and take advantage of the foreign country’s
lower corporate tax rate. Burger King is eloping with Canada’s donut and coffee
shop of choice, Tim Horton’s, and the new combined entity will only face a 26%
corporate tax rate in Canada, as compared to 35% in the U.S.
While President Obama has dubbed Burger King, and other
inversion offenders, as “unpatriotic”, Bloomberg
Business week discusses the tax inversion’s growing popularity with
companies in many different industries.
0 comments:
Post a Comment