Burger King wanted Tim (Hortons) HQ in U.K. for tax reasons
Source: The Globe and Mail
While preparing its bid for Tim Hortons Inc. last year, Burger King Worldwide Inc. initially wanted to set up the new parent company of Canada’s iconic supplier of double-doubles and maple-glazed doughnuts across the Atlantic in Britain, to avoid taxes.
... The revelations came on Thursday in testimony before a U.S. Senate subcommittee in Washington by Joshua Kobza, the 28-year-old chief financial officer of Oakville, Ont.-based Restaurant Brands International Inc., the parent company of Burger King and Tims. He was the CFO of Burger King when it was planning its purchase of Tim Hortons last year.
... Amid widespread calls for U.S. tax reform, the U.S. Senate’s Permanent Subcommittee on Investigations held hearings Thursday on the rash of recent high-profile “tax inversion” deals in which U.S. corporations have merged with foreign firms in order to move their headquarters elsewhere and escape the U.S. taxman.
According to a report released by the subcommittee before Thursday’s hearings and based on internal documents provided by the company, Burger King never seriously considered locating the new merged company’s head offices in the U.S. The documents also show the company concluded that a Canadian headquarters would result in a slightly lower effective tax rate than a British one.
Read more: http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/taxes-drove-valeant-burger-king-deals-senate-report-says/article25772559/
= new reply since forum marked as read
simple equation for that one.
