A great deal of merger between Tim Hortons Inc and Burger King Worldwide, Inc was completed two years ago. The combined business projected to generate $22 billion in sales with the 18,000 restaurants over the hundred countries. There was a criticism that the deal was intended to grab the benefits from tax inversion by way of shifting the head quarter of the company to Canada. The new office will be head office in Canada whereas the businesses in United States become subsidiaries. But in the current situation, there will be disadvantageous shifting office to Canada. Burger King estimated saving of U.S taxes between $400 million to $1.2 billion for the period of 2015 to 2018. All such systematic predictions over the merger deal disappear with new corporate income proposals. If the Carbon tax plan implemented in Canada, it will cost around $2,569 more in taxes. In the present political situation, it will be difficult to Canada to impose carbon tax due the New President’s tax policy changes. (Kurtis Doering, 2016).
The steps taken by earlier president to reduce U.S. emissions were in question and in dilemma as the elected newly president promised on the issues like dismantling environmental protection agency, cancelling the Clean Power Plan etc. (Kelly McParland 2016). Due to the pressure from the Canadian Government, the provinces are under the process of introducing the carbon taxes. With such steps, the businesses may relocate to the United States.The United States become more attractive with the major changes in corporate taxation those are proposed by the President. Mr. Donald Trump’s plan surely threatens to Canadian competitiveness. If the proposed tax plans applied, Canada needs to adjust with the atmosphere or become less competitive and the existing corporations in Canada supposed to move to the United States.