We hear you. We’re not moving, we’re just growing and finding ways to serve you better. -Burger King’s Statement over Tim Horton’s Acquisition
After the revelation Broke Today that Burger King has purchased Tim Horton’s, a Canadian fast food restaurant, for 11 billion dollars, answers for this acquisition were demanded.
In response to rumors that the acquisition was just so Burger King could avoid US business taxes through tax inversion, Burger King said “will continue to pay all of our federal, state and local U.S. taxes.”
For those of you wondering what a tax inversion is, it’s when a U.S. company sets up or buys another company in a country with a lower corporate tax rate and then calls the new country home—thereby dodging U.S. taxes it would otherwise have had to pay. (CNBC). Pretty much Burger King can have their taxes their way.
Whether or not Burger King will take advantage of this tax loophole, we’ll have to see, but I wouldn’t doubt they would take advantage of this system.