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http://www.bloomberg.com/news/articles/2015-09-18/coca-cola-says-irs-wants-3-3-billion-in-extra-taxes-after-audit
Coca-Cola Says IRS Is Demanding $3.3 Billion in Taxes Following Audit
The IRS’s move follows an audit of the tax years 2007 through 2009, Coca-Cola said in a regulatory filing posted Friday. The IRS hasn’t demanded any penalties, and the beverage giant said it believes the assessment is without merit. The agency told Coca-Cola that the matter has been brought to the IRS’s top lawyer with the recommendation that it be litigated, according to the filing.
Coca-Cola is one of several large American corporations to get embroiled with the IRS over profits recorded in foreign countries, which critics say can unfairly shield money from U.S. taxes. The IRS also is fighting with Amazon.com Inc. and Microsoft Corp. on their intracompany transactions. Coca-Cola’s dispute centers on licensing of properties to foreign-based businesses, which manufacture, distribute and sell products.
“We plan to pursue all administrative and judicial remedies necessary to resolve this matter,” Coca-Cola said in a separate statement on Friday. “The company has followed the same methodology for determining our U.S. taxable income from certain foreign company operations for nearly 30 years.”
Coca-Cola Says IRS Is Demanding $3.3 Billion in Taxes Following Audit
The IRS’s move follows an audit of the tax years 2007 through 2009, Coca-Cola said in a regulatory filing posted Friday. The IRS hasn’t demanded any penalties, and the beverage giant said it believes the assessment is without merit. The agency told Coca-Cola that the matter has been brought to the IRS’s top lawyer with the recommendation that it be litigated, according to the filing.
Coca-Cola is one of several large American corporations to get embroiled with the IRS over profits recorded in foreign countries, which critics say can unfairly shield money from U.S. taxes. The IRS also is fighting with Amazon.com Inc. and Microsoft Corp. on their intracompany transactions. Coca-Cola’s dispute centers on licensing of properties to foreign-based businesses, which manufacture, distribute and sell products.
“We plan to pursue all administrative and judicial remedies necessary to resolve this matter,” Coca-Cola said in a separate statement on Friday. “The company has followed the same methodology for determining our U.S. taxable income from certain foreign company operations for nearly 30 years.”