Burger King Claim That Move Won't Save Taxes Draws Skepticism

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Sept. 3 —  Daniel Schwartz, chief executive officer of Burger King Worldwide Inc., said he doesn't expect “meaningful tax savings” when the company adopts a new legal address in Canada through the purchase of a doughnut chain there.

While Schwartz's statement may have blunted criticism from U.S. politicians who are calling the Miami-based hamburger maker's address change a tax dodge, it's hard to square with the reality of the countries’ tax laws, according to experts on both sides of the border (166 DTR G-3, 8/27/14).

“If they don't see any tax benefits going forward, they are probably not looking very hard,” said Edward Kleinbard, a tax professor at the University of Southern California and a former partner at New York-based Cleary Gottlieb Steen & Hamilton LLP.