Burger King confirmed today the purchase of Tim Hortons to effectively "create the world's third largest quick service restaurant company."
The U.S. fast food giant will now move to Canada under the terms of the $11.4 billion merger. This apparent tax dodge has prompted some politicians south of the border to cry foul and rally constituents to boycott Burger King (and, presumably, Tim Hortons). Ohio Senator Sherrod Brown was the first to spurn the home of the Whopper®.
"Burger King's decision to abandon the United States means consumers should turn to Wendy's Old Fashioned Hamburgers or White Castle sliders. Burger King has always said 'Have it Your Way'; well my way is to support two Ohio companies that haven't abandoned their country or customers," Brown said. "To help business grow in America, taxpayers have funded public infrastructure, workforce training, and incentives to encourage R&D and capital investment. Runaway corporations benefited from those policies but want U.S. companies to pay their share of the tab."
The tax reality may be more complex than that, however, as this Bloomberg article attempts to illustrate.
· Burger King Acquires Tim Hortons for $11.4 Billion [-EN-]
· All Fast Food Wire Coverage [-EMTL-]