A PYMNTS Company

Canada: Burger King merger meets claims of tax-dodging

By  |  September 2, 2014

Burger King announced a major acquisition of a Canadian food chain this week, a deal that has earned controversy as the major US fast food company plans to exit the US through the transaction.

Burger King said it will acquire top Canadian donut chain Tim Horton for $11.5 billion. The merger will form the world’s third-largest fast food chain, according to reports.

But following the deal, Burger King said it will relocate its headquarters to Ontario to lower its tax bill.

The strategy is not uncommon as companies begin to eye overseas markets with lower taxes. Reports say the US has the highest headline corporate tax on the planet at 35 percent.

Some US consumers have reportedly panned Burger King’s buyout plans as a “tax-dodging” deal.

Full content: Bidness Etc

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.