Burger King's proposed $11.5 billion acquisition of Canada's Tim Hortons may offer big tax benefits to the U.S. fast food chain but the real tax winner is likely to be its controlling shareholder, 3G Capital.The New York investment firm is not only deferring a capital gains tax hit in the U.S. because of the deal structure, but is also poised to reap a multitude of dividend tax and other benefits by moving Burger King's domicile to Canada, tax experts on both sides of the border said.Burger King plans to purchase the Canadian coffee and doughnut chain in a C$12.64 billion (C$11.5 billion) cash-and-stock deal that would create the world's third-largest fast food restaurant group. 3G will own 51 percent of the new firm."3G clearly wants to get both the dividends and the capital gains," said lawyer Charles Kolstad at Venable LLP in Los Angeles. "Someone, who clearly knows what he or she is doing spent a lot of time thinking about this. And it's quite clever."
Tim Hortons Inc., is a quick service restaurant in North America. Shares of THI remained unchanged at $80.33. In the past year, the shares have traded as low as $50.67 and as high as $82.16. On average, 747588 shares of THI exchange hands on a given day and today's volume is recorded at 589884.
Tim Hortons Inc., is a quick service restaurant in North America. Shares of THI traded higher by 0.25% or $0.22/share to $87.32. In the past year, the shares have traded as low as $56.12 and as high as $89.99. On average, 688234 shares of THI.TO exchange hands on a given day and today's volume is recorded at 1499453.
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