By: Amanda Wilson
There has been a lot of publicity lately regarding Burger King’s proposed acquisition of Tim Hortons, as Burger King is expected to move its corporate headquarters to Canada following the acquisition. These type of corporate inversions, where U.S. companies move their headquarters outside of the U.S., have been gaining momentum. We have also seen large companies, such as Apple, benefiting from using foreign holding companies to protect income for their foreign operations from U.S. taxation. Many politicans criticize these moves as unpatriotic. However, they also offer corporate taxpayers the opportunity to benefit from lower corporate tax rates.
If your company has foreign operations, it may be worth considering whether they provide a good option for your business.