Burger King Is In Talks To Buy Canada's Most Famous Donut Chain To Avoid US Tax

[MrPrena]

Burger King Is In Talks To Buy Canada's Most Famous Donut Chain To Avoid US Taxes.


Well, even Pershing Square is about to Public offer outside the US.


http://finance.yahoo.com/news/report-burger-king-talks-buy-000000919.html

http://l2.yimg.com/bt/api/res/1.2/z6554CrDxxa.5_uwWPqAJw--/YXBwaWQ9eW5ld3M7cT04NQ--/http://globalfinance.zenfs.com/en_us/Finance/US_AFTP_SILICONALLEY_H_LIVE/Burger_King_Is_In_Talks-92f14317134f102a3448c89b85e32404

http://l1.yimg.com/bt/api/res/1.2/X4_KcIbWr49dtQqW0aKhjA--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTQxNDtweG9mZj01MDtweW 9mZj0wO3E9NzU7dz03MzY-/http://media.zenfs.com/en-US/video/video.cnbc2.com/f4217b8ba7066d4bb70b334d6668c284

[Dave]

So does that mean we get a Tim Horton's here? [Coffee]

[spqrzilla]

Uh oh. We buy Canada's Tim Horton's, that would be like taking Terrence & Phillip ... and there will be war.

https://www.youtube.com/watch?v=0BoO3_5tU8A

[ruthabagah]

So does that mean we get a Tim Horton's here? [Coffee]

Finally some good donuts here! And TimBits: to die for.

[sniper7]

Fuck Terrance and Phillip! With their beady black eyes and flapping jaws.

[stoner01]

Finally some good donuts here! And TimBits: to die for.

This. Pleeeeeeeeease let us get Tim's.

[Madeinhb]

I heard part of it is so they can relocate corporate office to Canada so they don't have to pay as much in taxes.

[Dave]

I heard part of it is so they can relocate corporate office to Canada so they don't have to pay as much in taxes.
That's the main reason, but if them merging means we get TH's in more than just northern border states I'll be happy.

[MrPrena]

http://i62.tinypic.com/1z1xu05.jpg

http://i58.tinypic.com/im1cv6.jpg


http://i62.tinypic.com/2a7tv6t.jpg

[Irving]

This thread makes me want to skip Bob Chins tonight and go to Burger King instead.

[Gman]

Our Federal Govt. has some of the highest corporate tax rates in the world. Higher tax rates mean lower tax revenues. Taxation is a disincentive...but I'm not surprised that the idiots in DC can't figure that out.

[beast556]

Cant blame burger king 20% reduction in taxes is a no brainer. Our goverment is doing everything in its power to drive all our businesses out and crash our economy.

[Rucker61]

To be accurate, while Canada's national corporate tax rate is 15%, Ontario has an 11.5% corporate tax rate, which pushes the overall rate to 26.5%. No US company with decent tax attorneys pays anything close to the nominal corporate tax rate - I've found some data that suggests that BK's effective tax rate is closer to 27%. As recently as 2011 the overall effective tax rate in the US for corporations with $10M in assets was about 12.6%

[Gman]

To be accurate, while Canada's national corporate tax rate is 15%, Ontario has an 11.5% corporate tax rate, which pushes the overall rate to 26.5%. No US company with decent tax attorneys pays anything close to the nominal corporate tax rate - I've found some data that suggests that BK's effective tax rate is closer to 27%. As recently as 2011 the overall effective tax rate in the US for corporations with $10M in assets was about 12.6%
http://blogs.marketwatch.com/capitolreport/2014/08/06/from-the-horses-mouth-why-walgreens-didnt-invert/

“Inversion” refers to transactions where a company buys a foreign enterprise and then changes its tax domicile to take advantage of lower tax rates overseas. While the U.S.’s high statutory-tax rate isn’t really an impediment for businesses in some industries — those that can take advantage of various breaks and loopholes — it is for retailers and health-care companies. In 2013, Walgreen paid tax representing 37% of its pretax income.

[Bailey Guns]

It's not just taxes that drive some companies overseas. Burdensome regulations from federal agencies like the EPA contribute as well. It's not really a friendly business climate in this country, unfortunately.

[KS63]

Damn. Look at U.A.E.

[CO Hugh]

The reason for all this hand wring over companies and foreign headquarters is due to US Income Tax principles. The US taxes a citizen/residence based on worldwide income. Most other industrialized countries tax based on location. So your German factory pays German taxes but not US or French. Whereas if you are a US corporation, you get to pay both German and US taxes for your German operations, subject to foreign tax credits.

This puts US Corps at a disadvantage to foreign corporations worldwide. Thus, in te tax code is a provision that if the company sets up a special foreign corp, then the worldwide profits will not be taxed at US rates as long as the money stays offshore. This is where you hear of the Bermuda corps.

So the Government caused the problem and enacted provision in the tax code to mitigate it. All those profits are helping foreigners because the companies cannot bring the money back to use for US investment. While we could use the jobs and investment the only thing we get are illegal aliens.

[cofi]

This thread makes me want to skip Bob Chins tonight and go to Burger King instead.
Bk is absolute trash

[muddywings]

http://www.foxnews.com/politics/2014/08/26/ohio-sen-sherrod-brown-calls-for-burger-king-boycott-over-mooted-tim-hortons/

So let me get this straight-BK should stay in the US to provide as many tax dollars to the government machine as possible?
I see. The good of the state is more important that the stakeholders/shareholders of the company....

48907

And yes, I'll be buying a whopper meal tomorrow. Granted, I'll probably give it to the beggar on the corner but I'm happy to support capitalistic economics. Until the other side figures out that 'spreading the wealth around' is not sound economic theory we'll continue down this shithole path we're on....

[roberth]

http://www.foxnews.com/politics/2014/08/26/ohio-sen-sherrod-brown-calls-for-burger-king-boycott-over-mooted-tim-hortons/

So let me get this straight-BK should stay in the US to provide as many tax dollars to the government machine as possible?
I see. The good of the state is more important that the stakeholders/shareholders of the company....

48907

And yes, I'll be buying a whopper meal tomorrow. Granted, I'll probably give it to the beggar on the corner but I'm happy to support capitalistic economics. Until the other side figures out that 'spreading the wealth around' is not sound economic theory we'll continue down this shithole path we're on....

Yes, just ask the Delphi bondholders.

[MrPrena]

Although I am not a fan of BK executive (for other reasons), if they want to move to reduce fed corp tax rate, let them. THey are not violating any laws.

D's should stop crying about companies leaving US, and try to make the corp taxes more attractive? In fact, let's make payroll taxes and cap gain taxes more attractive as well.
I've never seen a cap gain tax this high like we do.

[Jeffrey Lebowski]

http://i58.tinypic.com/im1cv6.jpg


http://i62.tinypic.com/2a7tv6t.jpg

It brings a tear (of joy) to my eye to see someone quoting the Laffer curve!