Thoughts on Burger King buying Tim Hortons?

[Engineer]

Yeah, corporate taxes are lower in Canada

Burger King must have shitty accountants. Many of the big US corporations pay ZERO tax on lots of profits. Many deductions and loopholes.

FaaaaaaaaaaaaaRRRRRrrrrrrrrrrrrrrrrr the accountants!

 

[Imp]

It's funny because they were not suppose to do that, it was part of the contract. Clearly they found some kind of loophole. Maybe those employees are considered contractors or something.

I'm sure the big suits in the ivory towers will be getting big bonuses over this.

What, you didn't notice the clause on page 842, paragraph 3, part ii?

 

[sdifox]

the layoff of Canadian employees have began.

 

[KMFJD]

Burger King must have shitty accountants. Many of the big US corporations pay ZERO tax on lots of profits. Many deductions and loopholes.

FaaaaaaaaaaaaaRRRRRrrrrrrrrrrrrrrrrr the accountants!

25% vs 40%

 

[Engineer]

25% vs 40%

You didn't read what I typed. Any good US corporation pays almost ZERO. The AVERAGE, IIRC, was around 12% (not 40%). Lots of deductions and loopholes. Burgerking should fire their accountants.

http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/index.html

 

[KMFJD]

You didn't read what I typed. Any good US corporation pays almost ZERO. The AVERAGE, IIRC, was around 12% (not 40%). Lots of deductions and loopholes. Burgerking should fire their accountants.

http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/index.html

No i definitely read what you typed and acknowledge it, i have no idea why it would make sense for them to move to Canada, i'm no accountant/tax expert.

 

[Engineer]

No i definitely read what you typed and acknowledge it, i have no idea why it would make sense for them to move to Canada, i'm no accountant/tax expert.

Because their tax effective rate (Burgerking) was very much over what Canada's marginal rate is. Millions of dollars in savings for them in taxes.

 

[KMFJD]

Burger King must have shitty accountants. Many of the big US corporations pay ZERO tax on lots of profits. Many deductions and loopholes.

FaaaaaaaaaaaaaRRRRRrrrrrrrrrrrrrrrrr the accountants!

I had to look this up, from Forbes

http://www.forbes.com/sites/timwors...eral-income-tax-true-but-horribly-misleading/

Yes, it is true that nearly two-thirds of US corporations do not pay the federal corporate income tax. This is because nearly two-thirds of US corporations end up paying the personal income tax on profits, not the corporate one.

An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.

In general, S corporations do not pay any federal income taxes. Instead, the corporation’s income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. This concept is called single taxation; if the corporation is taxed as a C corporation, it will face double taxation, meaning both the corporation’s profits, and the shareholders’ dividends, will be taxed.

 

[Craig234]

Ya, it's about inversion, evading paying their US taxes, so I avoid shopping there now.

 

[Craig234]

I had to look this up, from Forbes

http://www.forbes.com/sites/timwors...eral-income-tax-true-but-horribly-misleading/

Yes, it is true that nearly two-thirds of US corporations do not pay the federal corporate income tax. This is because nearly two-thirds of US corporations end up paying the personal income tax on profits, not the corporate one.

An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.

In general, S corporations do not pay any federal income taxes. Instead, the corporation’s income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. This concept is called single taxation; if the corporation is taxed as a C corporation, it will face double taxation, meaning both the corporation’s profits, and the shareholders’ dividends, will be taxed.

It's not that simple. Big corporations get complicated tax avoidance schemes in the law (sometimes), and some use them to pay very little tax. Others don't.

We have a major industry of accounting firms whose role is to aggressively find and use, and play a role in the agenda to legalize, those tax evasions.

There are the 'big 5' accounting firms. Here's what happened when one got caught.

http://www.chicagotribune.com/news/chi-0209010315sep01-story.html#page=2