NEW YORK: Burger King may have taken a lot of flack in the past week for a deal that should curb its US tax bill but in many ways it is consistent with the burger chain’s aggressive tax-reduction strategies in recent years.

Some US lawmakers and other critics attacked the company that is the home of the Whopper for deciding to move its tax base to Canada from the US through its proposed purchase of Oakville, Ontario-based coffee and doughnut chain Tim Hortons. They say it will allow Burger King to avoid paying some US taxes.

That would be nothing new. A Reuters analysis of Burger King’s regulatory filings in the US and overseas, which was also reviewed by accounting experts, shows that it has been making major efforts to reduce its US tax bill for some time.

By massaging down US taxable profits while maximizing the profits it reports in low-tax jurisdictions overseas, Burger King is able to operate one of the most tax-efficient businesses in the US fast-food industry.

The chain’s effective tax rate of 26 per cent over the past three years compares with rates above 31pc at McDonalds Corp, Starbucks Corp and Dunkin Brands Group Inc.

Published in Dawn, September 3rd, 2014