Burger King Merger With Canadian Chain Tim Hortons Causes Uproar; Critics Joke, "Take Justin Bieber Back"

American fast food chain's purchase of company will result in new parent company paying corporate taxes in Canada where raters are cheaper

By Rebecca Macatee Aug 27, 2014 2:51 PMTags
Burger King, Justin BieberBurger King, Getty

Not everyone is happy about the Burger King-Tim Hortons merger that was confirmed Tuesday.

The U.S.-based home of the "Whopper" purchased the Canadian coffee and doughnut chain for about $11 billion, funded in part by Warren Beatty. Almost immediately, many consumers in the States accused Burger King of wanting to move their headquarters to the Great White North to benefit from Canada's cheaper taxes.

The fast food chain clarified in a Facebook post, however, that Burger King's headquarters would remain in Miami, where they were founded back in 1954. Before the public could fully digest this info,though, there were many who thought that chain was moving to Canada...and if that was the case, they might as well take Ontario native Justin Bieber back up there with 'em!

"Let me see if I've got this straight," tweeted one user. "Canada gets Burger King, and we're still stuck with elfin' Bieber? Is that right?"

Another asked jokingly, "Can we kick Burger King out of the country if they tax invert to Canada? Can we shut Justin Bieber in a BK just before that?"

Then there was author Kelly Oxford, tweeting on the assumption that Burger King was "moving to Canada, " who wrote, "if this is America's retaliation for Justin Bieber, well done."

Canadians, for the most part, were too polite to sass back.

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But if Burger King's headquarters aren't moving to Canada, did this massive Tim Hortons merger have any effect on the American fast food eatery's financial relationship with Canada?

Tim Hortons CEO Marc Caira explained on Today that while Burger King will continue to pay their taxes in the U.S., Tim Hortons will continue to pay their taxes in Canada, and the "new holding company we're going to create will obviously pay their taxes in Canada."

In other words, Burger King and Tim Hortons' individual headquarters remain where they are and both companies will continue to pay American and Canadian taxes, respectively, but the new merged company's corporate taxes will be paid in Canada, where the rates are cheaper.

Burger King reassured consumers in a Facebook post, though, that "The WHOPPER isn't going anywhere," and Beliebers, fret not: We have no reason to believe the Biebs is either.

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