Burger King may move to Canada over high U.S. corporate taxes

10 years ago | Posted in: Business | 621 Views

Miami – Fast food giant Burger King, headquartered in Miami, Florida, may be about to lose its corporate tan by moving to Canada to escape higher corporate taxes in the U.S. by acquiring Tim Hortons.

While the giant fast-food restaurant company has bragged for years that it takes two hands to handle its whopper, reports it could move its headquarters to Canada are not whoppers.

Investors have reportedly embraced the announcement by Burger King on Sunday that it was in talks to purchase Canadian coffee and doughnut chain Tim Hortons to create the world’s third-largest fast food restaurant company. Stocks in both companies jumped more than 20 percent on the news, according to a USA Today report.
Back in the U.S., the Obama administration has criticized tax inversions because they mean a loss of tax revenue for the U.S. government. Mr. Obama’s opponents argue that high taxes are pushing industries to relocate abroad.

Mr. Obama, who has vowed to govern the U.S. by Executive Order, is considering measures to prevent American companies from relocating their headquarters overseas where corporate taxes are much lower.
However, White House spokesman Josh Earnest was not prepared to comment on Burger King’s announcement on Monday, instead saying the Obama administration is considering executive steps it could take to de-incentivize such inversions… see more

source: digitaljournal

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