Soca Warriors Online Discussion Forum
General => General Discussion => Topic started by: ProudTrinbagonian on August 26, 2014, 01:24:09 PM
-
Burger King announced that it has reached a deal to buy Canadian doughnut chain Tim Hortons and base itself in Canada, a controversial transaction that raises questions about business taxes and corporate patriotism
http://money.cnn.com/2014/08/26/news/companies/burger-king-tim-horton/index.html?hpt=hp_t3
I think it's a fantastic move and benefits Burger King, Tim Horton's and Canada. Looking forward to more US companies following suit
-
This move is for Burger King to avoid taxes in the US.
-
Corp tax rate is USA 40% Canada 26%
-
Exactly, can't blame BK.
Some serious benefits there other than the immediate tax benefits such as more real estate for Tim's to promote their coffee and a legitimate competitor for McCafe Coffee.
Young talent running BK
BK Chief Executive Officer, Daniel Schwartz, is only 34 years old.
Chief Financial Officer Joshua Kobza is only 28
Sami Siddiqui, Burger King's head of investor relations, who is 29.
-
Corp tax rate is USA 40% Canada 26%
The top corporate tax bracket is 35% not 40%... and many companies don't even pay that much.
-
Corp tax rate is USA 40% Canada 26%
The top corporate tax bracket is 35% not 40%... and many companies don't even pay that much.
what's your point?
-
what's your point?
That you are wrong. Not surprisingly, even the obvious is lost on you.
Cisco systems pays about 20% in corporate taxes, largely due in large part to generous tax-abatement incentives on both the state and federal level. As I said, many don't even pay the top rate. Burger King just being 'greedy'... but more power to them, I hope the inevitable consumer backlash is palatable.
-
From Wiki:
Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Federal tax rates on corporate taxable income vary from 15% to 35%. State and local taxes and rules vary by jurisdiction, though many are based on federal concepts and definitions. Taxable income may differ from book income both as to timing of income and tax deductions and as to what is taxable. Corporations are also subject to a federal Alternative Minimum Tax and alternative state taxes. Like individuals, corporations must file tax returns every year. They must make quarterly estimated tax payments. Controlled groups of corporations may file a consolidated return.
At 35%, the United States has the highest nominal top corporate tax rate in any of the world's developed economies.[1] However, the average corporate tax rate in 2011 dipped to 12.1%, its lowest level since before World War I, largely due to the great recession and a bonus depreciation tax break.[2]
From KPMG for Canada. It says General Corporate is 38%. Go to the link below and try to make sense.
http://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/TaxRates/Substantively-Enacted-Income-Tax-Rates-For-Income-Earned-By-A-Gen-Corp-2013-And-Beyond-V2.pdf
-
From Wiki for all the countries.
http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates
BurgerKing should have gone UAE. 0%. Turks and Caicos. 0% BVI 0%. TT running a cool 25%
-
This is what I read in the comments in the WSJ in response to the move.
1. Burger King pays the same tax rate in Canada (28%) that they do in the USA. Last year BK paid 28% of its income in USA taxes.
2. BUT Canada credits Canadian-based firms for dividends they receive from foreign companies. BK's owners have some companies that pay them dividends through Brazil. These dividends are taxed less in Canada than the USA.
So, BK can get a more favorable tax deal through Canada.
-
Yeah, without doubt this is a financial move by BK, but they really not in position to complain about tax differential, because it doesn't appear to be that significant.
-
Whats the benefit to Tims? More US reach? They've done a good job on the boarder states.