What is tax inversion?
What is tax inversion?
A corporate inversion—also called a tax inversion—is a process by which companies, primarily based in the U.S., relocate operations overseas to reduce their income tax burden. Companies undertaking a corporate inversion usually select a country which has a lower tax rate than their home country.
Is tax inversion legal?
Corporate inversion is a legal strategy and is not considered tax evasion as long as it does not involve misrepresenting information on a tax return or undertaking illegal activities to hide profits. However, there has been controversy surrounding the ethics of the companies that opt for corporate inversions.
What is the tax rate at Burger King?
Burger King, on the other hand, currently pays much less—just over 25 percent—and is likely to downsize its tax payments even further. As you can see below, its current rate is already pretty low compared to other fast food companies.
How much does Burger King pay in taxes?
This new Americans for Tax Fairness report shows that Burger King and its leading shareholders will dodge an estimated $400 million to $1.2 billion in taxes between 2015 and 2018 from its planned merger with Tim Hortons, a Canadian company.
What is merger inversion?
Inversion Merger: A strategy used by companies with overseas income to reduce their tax burden. A company may be re-incorporated overseas in a country with lower tax rates so as to bypass paying higher taxes on foreign generated income.
What is an example of an inversion?
As a literary device, inversion refers to the reversal of the syntactically correct order of subjects, verbs, and objects in a sentence. For example, it’s syntactically correct to say, “Yesterday I saw a ship.” An inversion of this sentence could be “Yesterday saw I a ship,” or “Yesterday a ship I saw.”
Is Burger King a Canadian company?
Burger King (BK) is an American multinational chain of hamburger fast food restaurants. 3G, along with partner Berkshire Hathaway, eventually merged the company with the Canadian-based doughnut chain Tim Hortons, under the auspices of a new Canadian-based parent company named Restaurant Brands International.
