Burger King to relocate its Headquarters to Canada
Sherrod Brown, United States Senator from Ohio, said in a statement on Monday to consumers to boycott the home of the Whopper, after it emerged on Sunday that Burger King is looking forward to buy Tim Hortons. The deal will require Burger King to shift its headquarters to Canada. This will help the company lower the corporate tax payment as well.
The move by Burger King will leave consumers in the United States with the options of Wendy's Old Fashioned Hamburgers or White Castle sliders, said Brown. He criticized Burger King for abandoning US customers and offered his support to two Ohio-based companies that are willing to provide services to consumers of their country.
Wendy is headquartered in Dublin, Ohio, whereas White Castle is based in Columbus. President Barack Obama and Congress have also denounced the move of Burger King as it would result into a loss of tax revenue for the US government.
White House spokesman Josh Earnest said the president is not happy by the decision of Burger King as he believes that it is unethical for companies to go for a tax inversion just to save money in taxes. The Obama administration is currently looking for measures to de-incentivize inversions.
AbbVie and Valeant Pharmaceuticals are among big companies that have pursued tax inversions to cut their costs. Earlier this month, Walgreen had to retract its plans of pursuing a tax inversion after drawing flak for the planned move. It has not been ascertained yet that how much Burger King would be able to save in tax costs after striking the deal with Tim Hortons.
It was recently reported by an accounting firm KPMG that total costs in Canada are 46.4% lower than in the United States. It has also emerged that Warren Buffett's Berkshire Hathaway firm provided nearly 25% for Burger King's proposed takeover.
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