Fast food chain Burger King will avoid hundreds of millions of dollars in U.S. taxes if, as planned, it completes its pending takeover of Canadian coffee-and-doughnuts chain Tim Hortons, a tax activist group said on Thursday. In one of the most notable of several corporate tax "inversion" deals this year, Florida-based Burger King announced in late August it would purchase Tim Hortons and put the headquarters of the combined company in Canada.U.S. companies doing inversions - which involve buying a foreign company and assuming its tax nationality to cut overall tax costs - have been blasted as tax dodgers by Democrats and liberal groups. President Barack Obama has criticized a "herd mentality" by companies seeking deals to escape U.S. taxes.In a report that Burger King described as "flawed," Americans for Tax Fairness, a group often critical of corporations over taxes, said the fast-food chain's inversion "creates substantial tax avoidance opportunities."For instance, it said, by placing its headquarters in Canada so it is no longer a U.S. company for tax purposes, Burger King could avoid $117 million in U.S. taxes by never having to pay corporate income tax on foreign profits it holds offshore.
Tim Hortons Inc., is a quick service restaurant in North America. Shares of THI traded higher by 2.73% or $2.25/share to $84.67. In the past year, the shares have traded as low as $50.67 and as high as $85.79. On average, 1058580 shares of THI exchange hands on a given day and today's volume is recorded at 822171.
Tim Hortons Inc., is a quick service restaurant in North America. Shares of THI traded higher by 2.39% or $2.27/share to $97.21. In the past year, the shares have traded as low as $56.12 and as high as $98.07. On average, 744875 shares of THI.TO exchange hands on a given day and today's volume is recorded at 893489.
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