Posted on 08/26/2014 4:30:48 AM PDT by jimbo123
Speaking to CNBC in May on the subject of tax inversion deals, Warren Buffett said, “it does get a little annoying when we see other people paying far lower tax rates while engaging in the same sorts of businesses that we engage in.”
Now Buffett appears to have decided to get in on the game: The Oracle of Omaha is extending financing to Burger King for its planned takeover of Canadian coffee-and-donuts chain Tim Hortons , the Wall Street Journal reported Monday evening, citing sources familiar with the deal.
Buffett’s Berkshire Hathaway will provide roughly 25% of the financing, the Journal says, and will receive preferred shares in the combined company that would pay out a healthy dividend, though the exact nature of Berkshire’s participation was not clear.
After the completion of the deal, Burger King plans to move its headquarters from Miami to Oakville, Ontario, where it would be subject to Canada’s federal corporate tax rate of 15%, well below the top U.S. marginal rate of 35%.
(Excerpt) Read more at forbes.com ...
I imagine his secretary will continue to pay higher taxes?
Spoke with a vendor of Burger King this past weekend and it was said, BK is getting rid of the older management employees and replacing them with young, aggressive ones. The nature of BK’s business model is changing drastically, according to this vendor. Maybe all of this, moving to Canada/Tim Horton’s, is the start.
Leave Timmy’s alone!
You dare question a member of the royal family!
I don't understand it except from a tax standpoint: Wendy's owned Horton's for 11 years and there was no synergy there, that BK thinks it can have a different outcome surprises me.
That would be because he does not pay his taxes and the Pols in DC do not call him on it. He is not the IRS’ enemy.
Oh I know - I was being sarcastic....
BK is moving the corporate HQ to Canada. Wendy’s did not do that. At least that appears to be the case.
Why is it news that Warren Buffett is a hypocrite? We’ve all known this for a long, long time.
Which I think proves my point: this is a tax inversion move, not a decision being made based on growing the business.
I am tempted to say that the main effect will be that Corporate will switch from having to speak Spanish/Creole in Miami to having to speak Canadian/Quebecois in Oakville.
Yesterday's Miami Herald article describes Burger King operations would remain in Miami in a Tim Hortons deal.
Either way, it is hard to imagine many folks willing to make a move to Canada from sunny Miami, and no state income tax.
Berkshire Hathaway - Vulture capitalists extraordinaire!
That may be the point. Americans are expensive under the obama regime.
Uh oh. Buffett is an infamous Friend Of Bammy.
Gonna make it mighty hard for the Administration to demagogue this move now.
I am happy to say I won’t eat at a Burger King.
What will Obama do about this?
(probably nothing)
BK is waning. Every store in my area is a dirty pit run by foreigners.
Warren Buffett LOVES high taxes... for everyone else.
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