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When news broke of the Tim Hortons/Burger King merger, many investors cheered. But my immediate thought was somewhat lackluster. I didn't see the non-financial synergy. Instead, I saw huge potential issues for Tim Hortons (soon to be minority) shareholders.
The Burger King/Tim Hortons merger is the latest attempt by a US company to lower its tax burden by moving overseas, and sees Tim Hortons move into foreign hands for the second time. Do you support the deal?
Inversion deals, a controversial tax arrangement in which a business incorporates in another country to avoid paying U.S. corporate taxes, have come under fire in a new way recently.
Tempting overseas tax rates are encouraging many U.S. companies to pursue cross-border deals. A number of deal inversions have been explored or attempted in the last two years alone.