Burger King announced that it is in talks to acquire a Canadian coffee-and donut chain, Tim Hortons, Inc. The deal is planned to be structured as a tax inversion, allowing Burger King to save U.S. taxes on its foreign profits.
See my prior post, Tax Inversions and Responsible Business Decisions. In that post I discussed the fact that despite the political rhetoric, whether the decision to invert is a responsible one or not is based on the particular facts and circumstances of the company. I suggested that for Walgreens–who was then considering inversion–it would be an irresponsible decision due to Walgreens’ uniquely American persona.
Walgreens ultimately decided not to invert, but perhaps for reasons other than a sense of responsibility to its community.
I have not studied the Burger King situation. But my sense is that like Walgreens, Burger King has a very Main Street, U.S. A. persona. That may make its decision to invert an irresponsible one.