The Main Stream

Aug 25, 2014 2:42 PM by Associated Press

Burger King in talks to buy Tim Hortons

MIAMI (AP) - Burger King is in talks to buy doughnut chain Tim Hortons and create a new holding company headquartered in Canada, a move that could shave its tax bill.

Such an overseas shift, called a tax inversion, has become increasingly popular among U.S. companies and a hot political issue.

In a tax inversion, a U.S. company reorganizes in a country with a lower tax rate by acquiring or merging with a company there. Inversions also allow companies to transfer money earned overseas to the parent company without paying additional U.S. taxes. That money can be used to reinvest in the business or to fund dividends and buybacks, among other things.

Shares of Burger King and Tim Hortons both jumped 17 percent before the opening bell, headed toward all-time highs.

»Comments

Most Popular

Top Videos

1 2 3 4