Prime Minister Stephen Harper welcomes Tim Hortons

September 23, 2009

Highlights Canada as an investment destination, citing lower business taxes under Harper government leadership

OAKVILLE, ONTARIO – Prime Minister Stephen Harper highlighted his government’s record of lowering taxes to attract business to Canada, after meeting today with executives of Tim Hortons.  Yesterday shareholders of the multinational corporation voted to reorganize as a Canadian public company.

Since first coming into office, our government has helped set the conditions for Canadian businesses to succeed and to make Canada a great place to do business,” said the Prime Minister.  “Tim Hortons’ decision shows our strategy is working.”

The Harper Government has made Canada more competitive by reducing the general corporate income tax rate from over 22 per cent to 19 per cent today. Through these and other policies the Government is helping to create jobs now and is laying the foundation for long-term economic growth.  By 2010, Canada will achieve the lowest overall tax rate in the G7 on new business investment.

Our government has reduced taxes, paid down debt and invested in the infrastructure projects that businesses need to succeed,” said the Prime Minister.  “Canada has not been immune from the global economic downturn and our Government remains hard at work to protect Canadians and to ensure our country’s recovery.  However, Canada continues to fare better than many others, and is clearly an attractive investment destination.”

Tim Hortons was founded in Canada in 1964.  In 1995, the company merged with the U.S. firm Wendy’s International Inc.  In 2006, it was spun off to become its own separate U.S. company.



Backgrounder

RETURN OF TIM HORTONS INC. CORPORATE OFFICES TO CANADA

Tim Hortons Inc.

The Tim Hortons chain was founded in 1964 in Hamilton, Ontario.  In 1995, the company merged with Wendy's International Inc., expanding into the United States.  In March 2006, Tim Hortons completed an initial public offering, becoming a separate company as of September 29, 2006. Tim Hortons trades on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). 

In June 2009, Tim Hortons filed a registration statement with the U.S. Securities and Exchange Commission for the Company's proposed reorganization as a Canadian public company.  On September 22, 2009, shareholders approved adoption of the reorganization agreement.


Doing Business in Canada

Canada has many strengths that foster a welcoming investment and business climate.

Canada is recognized around the world for its sound economic and financial management.  In fact, according to the World Economic Forum, the country has the strongest banking system in the world.

The 2008 International Institute of Management Development (IMD) World Competitiveness Yearbook states that Canada leads all G7 countries in ease of doing business, and the Economist Intelligence Unit forecasts Canada as the #1 place to do business in the G7 for the next five years.

Canada has not been immune to the current economic downturn.  In response, the Government introduced Canada’s Economic Action Plan to boost confidence and economic growth.

The government has extended the accelerated Capital Cost Allowance for business investments in machinery and equipment for two years.

As a result of corporate income tax reductions, Canada will have the lowest statutory tax rate in the G7 by 2012.  Canada will also have a statutory tax rate advantage over the U.S. of more than 10 percentage points.

In this year and future years, businesses will also benefit from previously legislated reductions in the corporate income tax rate, which fell to 19 percent this year and will fall to 15 percent by 2012.  By next year, Canada will have the lowest overall tax rate on new business investment in the G7.

For small and medium-sized businesses, the government is increasing the lending powers of both Export Development Canada and the Business Development Bank of Canada.  Further, the government is expanding the Canada Small Business Program to provide even greater support.

The government introduced much-needed reforms to its competition and investment laws and policies.  Amendments to the Investment Canada Act encourage more foreign investment, generating all the benefits that such investments bring while also making sure new foreign investments will not jeopardize Canada’s national security.