Burger King Shareholders Can Dodge a Whopper of a Tax Bill

The Burger King/Tim Hortons merger is structured to let shareholders have it their way when it comes to taxes.

The latest in a string of U.S. companies buying foreign firms so they can skirt the IRS marries a burger-and-fries icon (Burger King) with coffee-and-donut icon (Tim Hortons). When the new firm reconstitutes itself in Ontario, U.S. corporate tax revenues will go on diet. Normally, these so-called inversions that cut corporate taxes can trigger a painful hike in individual income tax for shareholders.

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Kevin McCormally
Chief Content Officer, Kiplinger Washington Editors
McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.