Burger King in Talks to Buy Tim Hortons, Move HQ to Canada
Burger King is reportedly in talks with Canadian doughnut chain Tim Hortons to purchase the company and form what would become the world’s third-largest quick service restaurant chain, reports MarketWatch.
The deal would move Burger King’s headquarters to Canada and allow the company to move to a lower-tax jurisdiction in what is known as a tax inversion deal. Although the deal would create a new joint corporation, the two companies would continue to act independently.
Burger King is only the latest in many American companies to consider moving its headquarters abroad to cut down on corporate taxes. The move has faced considerable opposition in Washington as such moves mean cuts in tax revenue, and the White House is currently considering whether or not to take a harder line on inversions, according to The New York Times.
Presently, the American corporate tax rate is approximately 35 percent while the Canadian rate is about 15 percent. If Burger King does buy Tim Hortons, the company will be able to cut down on its current tax rate of approximately 27 percent.
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Karen Lo is an associate editor at The Daily Meal. Follow her on Twitter @appleplexy.