This is so typical! People pay more and more … Corporate citizenship is dead! Regardless of how much this report is accurate, you can’t spin your way around the point they are not contributing to the tax base required to keep our civil society civil. Free Trade deals in past decades has released the tempest…. That was the plan all along. Ask 99% of people if they are better off.
Our society and its people collectively fund profits but there is no symbiosis- it’s take take and more take. Behemoths like Burger King / Tim Hortons choose to hide billions offshore then make deals that harness paying fair share of taxes.! When people refer to companies acting ‘evil’, I’m becoming convinced it is a literal truth. Fast Food- Fast Fraud! Then they want me to kick in a few more bucks to help a kid at camp or play hockey? Really!!
As predictable Burger King claims the report is unfair. Aahhhh…
Burger King, Tim Hortons deal skirts taxes, U.S. group says
Burger King calls Americans For Tax Fairness report ‘materially flawed’
CBC News Posted: Dec 12, 2014 10:22 AM ET Last Updated: Dec 12, 2014 11:03 AM ET
The report came the same day the deal to create a quick-serve behemoth with $23 billion in sales from over 100 countries is set to be finalized. Shareholders and regulators on both sides of the border have given their OK to the deal.
The new company will be headquartered in Canada, which on the whole has lower corporate taxes than the U.S. — although Burger King paid 27.5 per cent last year, roughly the same as the 26.8 per cent tax rate that all-Canadian Tim Hortons says it paid.
Burger King could dodge $117 million in U.S. taxes on profits that it held offshore at the end its last fiscal year, the ATF report says. “Burger King has been able to indefinitely defer paying taxes on those profits under U.S. law; by becoming a Canadian company it may never pay U.S. taxes on those profits.”
In addition, Burger King may avoid an additional $275 million in U.S. taxes between 2015 and 2018 because under Canadian law, it will no longer have to pay U.S. taxes on future worldwide profits.
The report also reveals that Burger King’s largest shareholders could save as much as $820 million in capital gains taxes because of the way the company has structured the inversion.(CBC)