Tags: burger king | moving | canada | tax

Burger King's Moving to Canada a $1B Tax Saver, Say Reformers

Image: Burger King's Moving to Canada a $1B Tax Saver, Say Reformers
(Thomas Lohnes/Getty Images, file)

By    |   Friday, 12 Dec 2014 08:15 AM

Burger King will save $1 billion in taxes by moving its headquarters to Canada, according to a report from Americans for Tax Fairness, a liberal group dedicated to "tax reform that results in greater revenue" for the IRS.

In August, Burger King announced that it would seek a merger with Canadian-based coffee-and-doughnuts chain Tim Hortons. That deal is scheduled to be completed this week.

Over the next four years, "Burger King could save up to $820 million on capital gains taxes under the merger, another $275 million on future foreign earnings and $117 million on offshore profits," wrote The Hill after delving into the report from Americans for Tax Fairness.

President Barack Obama and other Democrats have criticized companies seeking to lower their corporate tax bills through so-called tax "inversions" that move headquarters and other assets to countries with lower rates.

Conservatives say it's perfectly natural for companies to want to escape U.S. corporate taxes, which are the highest in the world. Lower the tax rate, and the companies will come back, they say.

In the face of being labeled a tax dodge, Burger King has repeatedly stated that it is not seeking refuge from taxes. It repeated as much in response to the latest report.

"The analysis in the report is materially flawed and the figures do not accurately represent our facts and circumstances. As we’ve said all along, this transaction is driven by growth, not tax rates. Going forward, we do not expect our tax rate to change materially," it said in a statement.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
Burger King will save $1 billion in taxes by moving its headquarters to Canada, according to a report from Americans for Tax Fairness, a liberal group dedicated to "tax reform that results in greater revenue" for the IRS.
burger king, moving, canada, tax
256
2014-15-12
Friday, 12 Dec 2014 08:15 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved