Tim Hortons and Burger King are agreed to merger and the agreement did not stop by planning of the U.S. tax inversions.
Since many companies bearing the heavy burden of taxes in U.S., some of the companies seeking a chance to move out of the country in order to reduce their taxes. The deal of Burger King and Tim Hortons seems like helping Burger King deal with the taxes issues. Therefore, government of U.S. crash down on tax inversions, which makes a adverse impact that the local company cannot access foreign cash without paying taxes. However, it does not stop their deal. They confirmed the agreement finally and demonstrates that their cooperation is for long-term economic growth but not for tax benefit.
The final signature of the agreement is a powerful answer to the U.S. government. It demonstrates the the clear purpose of this merge to the public and also raise the reputation of these two brands. It is a good beginning for their cooperation. On the other hand, even though the U.S. government tried to stop the local company transaction by implementing the taxes regulations, it is impossible to work in the long term. Companies will still move out unless the government reduces their taxes costs.
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