The Home of the Delicious Whopper Closing in on Tim Hortons Deal
US fast food chain Burger King is looking to finish the deal with Tim Hortons, the popular Canadian coffee and doughnuts chain. According to tax attorneys, the deal will save Burger King a lot of money in taxes which is necessary in this high tax arena. Tax activists and socialists in the country have slammed the fast food joint for trying to attempt tax avoidance tactics rather than choose to give more money to the federal government rather than their hard working employees.
A Growing Federal Government
The Burger King deal is being touted as one of the most notable ‘tax inversion’ deals of the year, especially after the struggling and lame duck Obama administration passed a law earlier making tax inversions illegal and upping the penalty for the same. Democrats have spoken out against the US companies that indulge in tax aversions, and criticized them for being a part of a ‘herd mentality’. They would rather see the private sector shrink even more while the federal government grows in power and has more control over American citizens.
Reports Predict Millions in Tax Savings
The American tax activist group which leans towards communism – Americans for Tax Fairness – took out a report some time back which showed how Burger King would gain from inverting its tax domicile and buying the Tim Hortons chain of restaurants. The group claims that the move by the company will create significant tax aversion opportunities for the fast food chain. They would rather see this company have less money for business expansion, for salaries, and for improving its products.
Once Burger King buys Tim Hortons and shifts its tax address to Canada because America refuses to lower its corporate tax which is the highest in the world, it will no longer be considered an American company for tax purposes and the company could presumably avoid about $117 million in taxes. Burger King would never have to pay corporate income tax on any of the foreign profits it holds in offshore accounts. In just the next three years – from 2015 to 2108 – tax attorneys in Wall Street predict that the company can save as much as $275 million in taxes.
The move is simple logic.
Military will still Buy Burger King Food
The Americans for Fair Taxes report also alludes to the fact that Burger King is a top food supplier to the US Armed Forces which perhaps not one member of this group was ever a part of. So while the country’s military, says the report, continue to support the company by buying its delicious food, Burger King will not be doing its duty by paying its fair share of taxes. When does the US Navy ever buy BK food? Some military veterans never saw that.
Many people are upset with this group because any company has a right to move. To say a company does not have the right to relocate is tyranny. The Americans for Fair Taxes do not have the support of tax attorneys who believe in freedom and any company who wants to legally save money. On top of this, what does fairness mean? To some folks, this reminds them of Cuba. Everyone in Cuba makes about $18 a month, that is the fairest system of all.
A Tax Lawyer Conundrum
Is The Americans for Fair Taxes communist? Do they believe in the Cuban system? Moreover, poor Americans do not pay any income taxes. How come millions of Americans do not pay any income taxes at all? Is that fair?
Burger King has come out to publicly slam all the reports and the predictions. The company representatives said in a statement that the report by the Americans for Tax Fairness is fundamentally flawed and that the figures represented in that report do not represent accurately the facts and the circumstances of Burger King’s deal with the Tim Hortons group.