The Burger King corporation is apparently negotiating to acquire Canada’s Tim Horton’s doughnut shop chain.\u00a0 And if it does, that could have some interesting fiscal effects.<\/p>\n
The acquisition might also result in Burger King becoming a Canadian company.\u00a0 The merger may cause Burger King’s corporate headquarters to relocate to Canada – specifically, to Oakville, Ontario.<\/p>\n
Why?\u00a0 In a word:\u00a0 money.\u00a0 Lots of money.<\/p>\n
In Ontario, corporate taxes (combined Canadian Federal and Ontario provincial) are far lower than US corporate taxes – nearly 25% lower, actually.\u00a0 The company would save beaucoup bucks in taxes with the move.\u00a0 And a stock swap as part of the acquisition of Tim Horton’s by Burger King could easily satisfy the 20+% foreign ownership share required under US law for the resulting company to be considered foreign-owned – and thus foreign-taxed.<\/p>\n
This article from Forbes<\/a> gives more details.\u00a0 IMO it’s worth reading.<\/p>\n Our “fine liberal brethren” tell us we must tax the hell out of those “nasty, evil” corporations to pay for all that “free” stuff they want to give everyone.\u00a0 But I’m wondering what we’re supposed to do when all the money goes bye-bye – along with all the jobs – after corporations have had enough, say “Screw this”, and move to another country where they can get a better deal.<\/p>\n At some point, corporations will vote with their feet too. Money talks – quite persuasively.<\/p>\n I guess we’re supposed to just sit around with our thumbs firmly inserted while we bitch to each other on our “free” phones.<\/p>\n <\/p>\n Author’s Note:\u00a0 the deal has been confirmed<\/a>.\u00a0 The article’s title has been revised to reflect that.\u00a0 Now, time to start practicing saying, “How ’bout a Whopper with cheese, eh?”<\/em><\/p>\n No word on whether or not <\/em>poutine<\/a> will be added to the menu here.\u00a0 (smile)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"