Keith Farrell||City AM
Published on September 1st, 2014
Burger King drew the ire of many Americans this past week by announcing a plan to move their corporate headquarters to Canada from the United States after purchasing the Canadian doughnut chain Tim Hortons. In doing so, Burger King stands to save at least $8.1m a year in taxes.
The company remains adamant that Uncle Sam is not their motivation for moving, but it’s hard to believe that tax incentives do not play a factor. The top federal corporate tax rate in the United States is just shy of 40 per cent, whereas in Canada the rate is slightly over 26 per cent. In addition, the US taxes domestic companies on profits they’ve earned abroad, something that Canada and most other nations do not.