Burger King Purchases Canada Based Coffee and Doughnut Chain Tim Horton's

[RelicCollector]

Anybody see this? It was a $11 Billion dollar purchase by Burger King. Burger King will add a base to Canada

Tim Hortons/Burger King merger faces political backlash in Canada and the U.S. |

[GoJays]

Not...happy...

[bigzig]

Guess I've had my last whopper.


Edit: to bad OJ isn't around anymore. I could see this being a 10 pager easily.

[cruiserdaddy7]

I read a lot of people are not happy Burger King plans to basically evade taxes.

[death2redemptions]

Burger King is terrible so this doesn't affect me in the slightest.

[ssbledsoe]

Originally Posted by cruiserdaddy7

I read a lot of people are not happy Burger King plans to basically evade taxes.

If this country didn't have such a FUBAR tax system, they wouldn't consider this stuff.

I like TimBits though...

[jmscoggin]

Originally Posted by RelicCollector

Anybody see this? It was a $11 Billion dollar purchase by Burger King. Burger King will add a base to Canada

Tim Hortons/Burger King merger faces political backlash in Canada and the U.S. |

Negatory, they didn't do it to "add" a base but to 'relocate' one. Nothing operationally changes but by now claiming to be a Canadian company they are able to save a couple bucks on taxes. I hate taxes as much as anyone but this strikes me as anti-American and just flat wrong. Not that I would ever eat there before but this just sealed the deal for me. Awful corporate decision. The few million they will save in taxes will be lost in revenue due to the negative pr.

[fullmetal]

Originally Posted by jmscoggin

Negatory, they didn't do it to "add" a base but to 'relocate' one. Nothing operationally changes but by now claiming to be a Canadian company they are able to save a couple bucks on taxes. I hate taxes as much as anyone but this strikes me as anti-American and just flat wrong. Not that I would ever eat there before but this just sealed the deal for me. Awful corporate decision. The few million they will save in taxes will be lost in revenue due to the negative pr.

70% of BKW.N is owned by 3G Capital, a Brazilian origin private equity firm. This firm purchased H.J. Heinz last year. They must have seen inefficiencies with Tim Horton's and decided to clean it up. 3G has a strong history for tightening belts.

3G Capital has stated they intend to push the BK brand globally to compete with YUM and the current double taxation of foreign earned profits hurts all the investors, even us little guys. The US must amend the current tax statutes that tax repatriated moneys because it hurts everyone except the money grubbing tax collector.

[jmscoggin]

Originally Posted by fullmetal

70% of BKW.N is owned by 3G Capital, a Brazilian origin private equity firm. This firm purchased H.J. Heinz last year. They must have seen inefficiencies with Tim Horton's and decided to clean it up. 3G has a strong history for tightening belts.

3G Capital has stated they intend to push the BK brand globally to compete with YUM and the current double taxation of foreign earned profits hurts all the investors, even us little guys. The US must amend the current tax statutes that tax repatriated moneys because it hurts everyone except the money grubbing tax collector.

I don't disagree with this at all but I still think what they are doing is wrong. I have a hard time feeling sorry for these major corporations that pay pennies on the dollar of taxes that they should in the first place. I don't claim to know BK's or their holding companies tax rates that they pay but most mega corporations pay very little due to loop holes and accounting tricks. While I definitely agree that our tax code is antiquated and suffocating I'm not sure that this is the first place I would go to start handing out sympathy.

[pingbling23]

How did they afford the purchase? BK, by appearance, seems like the least profitable chain in my area. All the drive throughs are hoping, an BK seems like a ghost town.

[WilsonValdez]

Ughh this is awful. Timmy H's was the sh*t. BK is turrible. RIP Tim Horton's

[armyatc22]

So if they don't have to pay taxes does that mean if they say a Whopper Jr is .99 it will actually be .99 and not 1.15 with tax????

Smdh

[HBMC]

Originally Posted by jmscoggin

I don't disagree with this at all but I still think what they are doing is wrong. I have a hard time feeling sorry for these major corporations that pay pennies on the dollar of taxes that they should in the first place. I don't claim to know BK's or their holding companies tax rates that they pay but most mega corporations pay very little due to loop holes and accounting tricks. While I definitely agree that our tax code is antiquated and suffocating I'm not sure that this is the first place I would go to start handing out sympathy.

35% is the current corporate tax rate in the US, the highest in the industrialized world and third highest in the globe. If it were say, lowered to 12.5% to cut Canada's knees off (which is 15%), don't you think companies would come screaming here to open up their HQ's here? Hell yes. We'd have trillions in capital come flowing back into the US as repatriation costs would be far less than they are now and the economy would take off out of the permanent doldrums its in now.

"Loopholes" is a clever term to demonize something that is legal because it doesn't benefit someone politically. Calling someone or a business entity wanting to keep more of their money "Un-American" is jingoism at its finest.

I honestly don't blame BK for doing what they can to sat afloat, they're hemorrhaging money.

[Giancarlo27]

burger king sucks

lets hope they dont manage to ruin tim hortons

[deansayso]

Monsanto tried to buy Syngenta so they could have their headquarters in sweden. It would have saved them 200M per year in taxes....

[Jackg1980]

Originally Posted by armyatc22

So if they don't have to pay taxes does that mean if they say a Whopper Jr is .99 it will actually be .99 and not 1.15 with tax????

Smdh

Ofcourse they have to pay taxes. It's just the corporate tax.

[lindeman79]

So F!@#$^ What

[Jackg1980]

Originally Posted by HBMC

35% is the current corporate tax rate in the US, the highest in the industrialized world and third highest in the globe. If it were say, lowered to 12.5% to cut Canada's knees off (which is 15%), don't you think companies would come screaming here to open up their HQ's here? Hell yes. We'd have trillions in capital come flowing back into the US as repatriation costs would be far less than they are now and the economy would take off out of the permanent doldrums its in now.

"Loopholes" is a clever term to demonize something that is legal because it doesn't benefit someone politically. Calling someone or a business entity wanting to keep more of their money "Un-American" is jingoism at its finest.

I honestly don't blame BK for doing what they can to sat afloat, they're hemorrhaging money.

I agree with this. This is the CEOs job. We need to figure out a way to keep them here instead of running a lot of major companies out of the USA. The corporate tax is just too high here. Don't be surprise too see the government/media attacking Burger King big time. The government/media will simply bully them to stay. It may work.

[duwal]

Not like this is really going to affect either chain at all, just brilliant business strategy by Burger King. Have an extremely successful franchise and buy up another successful franchise from another country while saving nearly 50% in taxes by just relocating the company headquarters from the U.S. to Canada

[Gibberish]

Originally Posted by Jackg1980

We need to figure out a way to keep them here instead of running a lot of major companies out of the USA.

I disagree.
We need to learn self moderation. Being the buyer of some 70% or more, of the worlds goods, we need to learn how to spank companies that take off. Those companies need to do their books better IMO. I mean, demand.....if there is not as much as you need, you are doing something wrong, period.

[Jackg1980]

Originally Posted by Gibberish

I disagree.
We need to learn self moderation. Being the buyer of some 70% or more, of the worlds goods, we need to learn how to spank companies that take off. Those companies need to do their books better IMO. I mean, demand.....if there is not as much as you need, you are doing something wrong, period.

What exactly do you mean, "do their books better"?

[ssbledsoe]

Originally Posted by Jackg1980

I agree with this. This is the CEOs job. We need to figure out a way to keep them here instead of running a lot of major companies out of the USA. The corporate tax is just too high here. Don't be surprise too see the government/media attacking Burger King big time. The government/media will simply bully them to stay. It may work.

You bet they will. They did it to Walgreens after they planned to move headquarters, and now they're not because they were labeled anti-American, etc, etc.
I don't blame these companies at all. Our tax system is junk and they're doing what's financially best for their company. If the US would pull its head out of its butt, maybe companies wouldn't be doing these things. Instead of publicly demonizing these companies for trying to cut their tax burden (something the snakes in Washington do for themselves), they should look at reforming the tax system that's fair to everyone, as opposed to something that's "fair" to whomever has connections through lobbying or able to hide cash overseas.

[Brobocop]

Can you imagine the miracle it would take for the two parties to come together and somehow overhaul the personal and corporate tax systems? Think of all the deductions that would have to be examined and debated, all the write offs that would have to come up on the floor, it would take years, if not decades, with the way things are today. You can blame one party or the other, but in my eyes, it takes two to tango, and both parties are equally awful for different reasons.

[pac213up]

Tim Horton's and Burger King basically had the same effective tax rate last year. There may be some small tax benefits but I think has much more to do with other things.

[bigzig]

So with all the money they will be saving they can afford to pay a living wage now, right?