By Joseph Lawler | Washington Examiner
It’s official: Burger King is moving its headquarters out of the U.S.
The hamburger giant and the Canadian doughnut and coffee chain Tim Hortons announced Tuesday morning that the boards of directors of both companies had reached a definitive agreement to create a new company with 18,000 restaurants worldwide and $23 billion in annual sales. The new company will be headquartered in Canada.
The two companies had first announced the potential deal Sunday, drawing criticism from Democratic lawmakers who are concerned about U.S. companies using mergers with companies in lower-tax jurisdictions to reduce their U.S. tax payments.
So-called corporate inversions have grown dramatically in number over the past few years, mostly among pharmaceutical companies. Congressional Democrats have proposed legislation to tighten restrictions on companies relocating their headquarters to lower their taxes.