Posted on 06/29/2009 5:25:20 PM PDT by llevrok
Tim Hortons 3-month TSX chart Tim Hortons Inc., the coffee chain with an image as Canadian as hockey and maple syrup, said Monday it plans to change its registration to become a Canadian company.
The company said it has filed a plan with the U.S. Securities and Exchange Commission to become a subsidiary of a firm incorporated in Canada. Tim Hortons is currently the subsidiary of a U.S. firm, after being spun off by former owner Wendy's International in 2006.
The management and board of directors of Tim Hortons said the move would boost the company's position to take advantage of lower Canadian tax rates commencing in the year after the change is made.
"The company currently earns the substantial majority of its income in Canada," Tim Hortons said, owing to the fact that it has 2,930 outlets in Canada and 527 in the United States
Current Tim Hortons shareholders would get stock in the new Tim Hortons on a one-for-one basis.
Shareholders must still vote on the proposed rearrangement at a special shareholder meeting set for Sept. 22 in Oakville, Ont.
Following the reorganization, Tim Hortons intends to maintain dual listings on both the New York Stock Exchange and Toronto Stock Exchange.
Wonder how the company will react when the government tells them “NO”. You can’t change now to avoid our taxes. And in fact we will now penalize you for attempting it, and you will have intensely excruciating IRS examinations for the forseeable future.
i guess I will need to stop razzing my canadian friends about their high taxes and burdensome regulations...
I thought they already were a Canadian company. I never heard of Tim Horton’s until 1991, when I went to Canada looking for my family history. I found cousins I didn’t know I had, and was told that Tim Horton was a cousin of mine. They took me to the Tim Horton’s in the small town of Picton, Ontario, where my mother had been born. I had never heard of Tim Horton until then, nor did I know that he had played with the NHL. I believe he originally opened the chain of shops in partnership with a friend. I was under the impression that the same company who owned Carroll’s (burger joints) bought the franchise. It wasn’t until years later that I noticed Tim Horton shops opening up in the western part of NY State.
New Englanders are about Dunkin' Doughnuts as Canadians are about Timmy's.
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