Coca-Cola to pay $6 billion in back taxes and interest to the IRS after tax court ruling
The ruling makes Coca-Cola liable for $2.7B in back taxes, plus $3.3B in interest
Coca-Cola owes $6 billion to the IRS after tax court ruling
The ruling by a U.S. Tax Court judge in Atlanta deternmined the soda giant is liable for $2.7 billion, plus interest, to the IRS.
Coca-Cola announced Friday it will pay $6 billion in back taxes and interest after a ruling in a case dating back nearly 20 years with the IRS.
The dispute covers fiscal years 2007-09, which is when the IRS claimed Coca-Cola should have reported a higher income as a result of international transfer pricing.
"The company looks forward to the opportunity to begin the appellate process and, as part of that process, will pay the agreed-upon liability and interest," Coca-Cola said in a statement.
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Wrapped bottles of Coca-Cola move along the packaging line at a Coca-Cola HBC bottling plant. (Akos Stiller/Bloomberg via Getty Images / Getty Images)
The soda company said it plans to appeal the ruling, which was delivered in two sentences by U.S. Tax Court Judge Albert Lauber.
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According to The Wall Street Journal, Atlanta-based Coca-Cola said in a recent filing it would update its tax reserves if the company does not win its appeal.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KO | THE COCA-COLA CO. | 63.76 | +0.77 | +1.22% |
Coca-Cola has 90 days to request a review of the decision by a federal appellate court.
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The Wall Street Journal reported the company believes "it is more likely than not" that the appeals court will not overrule its tax positions, according to a regulatory report.