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There were many complaints about Burger King’s CEO Daniel Schwartz‘s decision to merge with Canadian doughnut concern Tim Hortons in what was seen as a tax inversion scheme. It seems that Burger King is getting a whopper of a tax break on the deal, as reported by the Chicago Tribune.
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Americans for Tax Fairness reported that shareholders will avoid between $4oo million and $1.2 billion on taxes between 2015 and 2018. In addition, Burger King will not have to pay any taxes on the $400 million it made on Canadian soil. Not only that, but Canadian laws don’t cover the amount of money Burger King makes overseas, which will essentially be tax free. Around seventy percent of the company is owned by 3G capital, a Brazilian firm located in the Cayman Islands, another tax haven. They will get around $820 million in tax breaks and may receive $5 billion in capital gains.
And for all this, Burger King doesn’t have to physically move to Canada. Its headquarters are located there, but it doesn’t have to move a muscle. It’s good to be the Burger King.
