Canada would be a winner, along with Tim Hortons and Burger King shareholders, due to a boost in corporate revenue that would be taxed in Canadian government hands
The proposed corporate inversion by Burger King that involves moving its headquarters to Canada while taking over Tim Hortons has created a maelstrom in Washington. Unlike U.S. Valeant’s takeover of Canada’s Biovail in 2010 with similar tax benefits, Burger King is a household name, putting the spotlight on Canada as a place to do business.
The Canadian reaction is mixed. Industry Minister James Moore rightly crows that Canada’s competitive business tax system is attracting economic activity and profits to Canada. The NDP asks whether any net benefits accrue from a foreign takeover of a Canadian icon when management could still remain in the United States, even though the new company will be headquartered in Canada.
The NDP position, however, is…
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