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View Diary: Burger King expands realm into Canada (184 comments)

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  •  You might want to look that up (4+ / 0-)

    The net corporate tax rate is 15%.

    •  Net based on what? (0+ / 0-)

      Deductions of some kind? For corporations, net tax rates here are often much lower than that anyway.

      So when you say net, is that a definitive constant of some kind or is it like it is here, varies based on deductions and so forth?

      "crush in its birth the aristocracy of our monied corporations which dare already to challenge our government" -Thomas Jefferson

      by Phil In Denver on Tue Aug 26, 2014 at 02:30:41 PM PDT

      [ Parent ]

      •  Yes, and no (0+ / 0-)

        The following is assuming the company qualifies, of course.

        The corporate rate is 38% of taxable income. Then you immediately apply a 10% federal tax abatement, taking it down to 28%. Then, if you are a Canadian-controlled corporation, you get a further 13% reduction, taking you down to 15%.

        So yes, it's due to deductions but the deductions are set.

    •  Provincial taxes make it higher (0+ / 0-)

      Canadian provincial income tax rates are generally much higher than US state income tax rates, which narrows the gap considerably.  

      Overall, the transaction structure appears to be driven by a desire not to have Tim Horton's income taxable in the US, not a desire to shelter BK income from US tax.

      "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

      by Old Left Good Left on Wed Aug 27, 2014 at 09:23:31 AM PDT

      [ Parent ]

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