Posts filed under “Legal”
The jury is out as to how much of the Burger King-Tim Horton merger is driven by the desire for tax savings. So far, the range seems to be modestly to not very much. The Los Angeles Times noted “Burger King’s overall effective tax rate in 2013 was 27.5%, according to its annual report. Tim Hortons’ effective tax rate for the same year was 26.8%.” That hardly seems motivation for a deal valued at almost $12 billion. More likely, creating a competitor to fast food’s No. 1, McDonald’s, was the driving force. The merger creates the world’s third-largest fast-food company.
Before we proceed, you might want to get a better understanding of the details of this transaction: Read my colleague Matt Levine’s excellent Warren Buffett Funds Global Donut-Burger Behemoth; for a good history of tax inversions, see this quick take.
As we have discussed, I find corporate inversions to be rather distasteful, and suggested several simple steps to make them less desirable to corporate America.
Spying On – and Blackmailing – Politicians, Generals, Judges, Lawyers and Citizens The newly-published revelations from Edward Snowden show that the NSA and FBI spied on an American citizen running for political office: The NSA also surveilled a U.S. citizen while he ran for political office: https://t.co/UzFya8ltmjpic.twitter.com/3jZdsYxQRG The Washington Post’s report last week also shows…Read More
Source: Gallup Last month, we noted how Congress reached a record low in confidence from the American people. (I blamed you, the non-voting public for allowing the inmates to take over the asylum and turning this into the worst. congress. ever.) As it turns out, it’s not just Congress: Confidence hit a six-year low…Read More
Merger of Big Banks and National Security Power … What Could Possibly Go Wrong? Bloomberg reports: Wall Street’s biggest trade group has proposed a government-industry cyber war council to stave off terrorist attacks that could trigger financial panic by temporarily wiping out account balances, according to an internal document. The proposal by the Securities Industry…Read More