Coke says IRS wants $3.3 billion in back taxes
Following a 5-year audit, the Internal Revenue Service notified the Coca-Cola Company that it owes an additional $3.3 billion in federal taxes plus interest for the period of 2007-2009, the company announced last week.
According to Coca-Cola the disputed amount is related to how much taxable income the company should report to the U.S. in connection with its licensing that allows foreign affiliates to sell its products around the world.
In a regulatory filing with the Securities and Exchange Commission, Coca-Cola said the IRS assessments are without merit and the company plans to pursue all administrative and judicial remedies to resolve the matter.
“Initially, the company expects to file a petition in the United States Tax Court challenging the notice,” Coca-Cola said. “The company intends to vigorously defend its position and is confident in its ability to prevail on the merits.”