Burger King/Tim Hortons to make massive tax savings through merger?

posted on 26th August 2014

Burger King has said it is in takeover talks with Tim Hortons, the Canadian coffee and doughnut chain. A merger would create the world's third-largest fast-food combine, one with a stock market value of about $18bn (£10.9bn; 13.6bn euros).

The firms have said that any new group would have its HQ in Canada, where corporate taxes are lower.

These so-called "tax inversion" deals are attracting increasing criticism in the US, where President Barack Obama is understood to be looking at how they can be prevented in future.

The US corporate tax rate is 35%, but 26.5% in Ontario, Canada, where Tim Hortons is based.

Read more at http://www.bbc.com/news/bus...

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