June 29 (Bloomberg) -- Tim Hortons Inc., the largest fast- food chain in Canada, filed to reorganize as a Canadian company to lower its tax rate.

Tim Hortons, which presently operates out of Oakville, Ontario, will become a unit of a Canadian-based parent with the same name, the company said today in a statement. Its current parent is based in Delaware.

The coffee and doughnut seller began looking at moving its registration in the fourth quarter of 2008 as a way to cut its tax rate. The company gets more than 90 percent of its revenue from its almost 3,000 Canadian locations. It has more than 500 restaurants in the U.S. and carried C$331.7 million ($287.5 million) in long-term debt as of March 29.

Tim Hortons will trade on both the New York Stock Exchange and the Toronto Stock Exchange, the company said. Shareholders will get one share in the new parent company for each share of Tim Hortons they currently own.

Investors will probably vote on the proposal at a meeting on Sept. 22, Tim Hortons said. Operating income may fall below the company’s $492.4 million to C$501.3 million forecast if the reorganization is approved this year because tax charges could push the tax rate more than 34 percent, according to the chain.

Tim Hortons rose 9 cents to C$28.75 at 4 p.m. on the Toronto Stock Exchange. The shares have declined 18 percent this year.

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net.

Last Updated: June 29, 2009 16:33 EDT