US politicians will flip out as Burger King flips HQ

There are, famously, few things more American than apple pie but you would have thought that the Whopper was one of them. Not for much longer. Burger King is about to become Canadian.

The world’s second largest burger chain is in talks to buy Tim Hortons, Canada’s biggest coffee and doughnuts seller. As part of the deal, Burger King will move its headquarters north of the border, where the corporate tax rate is a mere 26.5pc compared with 40pc in the States.

Such so-called “inversion trades” have become increasingly popular in recent months. They have also started to really annoy US politicians. In July, President Barack Obama branded companies who deployed the tactic “corporate deserters” who show a lack of “economic patriotism”.

But just how patriotic should companies be? Burger King is, after all, quite an international company. At the end of last year, its 13,000 outlets were spread across 79 countries.

Perhaps even more pertinently, since 2010 it has been majority owned by 3G Capital, a Brazilian company. It is hard to see why 3G should in any way feel economically patriotic towards the US.

Nevertheless, Burger King’s move is bound to increase hugely the political furore over inversion trades. It is all well and good when pharmaceutical firms that most American voters have never heard of are relocating to lower tax domiciles but it is really coming to something when the home of the Whopper flips headquarters and turns Canadian.

Well, Mr Obama, if you wanted an excuse to urge Congress to halt this kind of relocation with some quick-fix legislation – You Got It!

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