August 05, (THEWILL) – Atlanta beverage giant, Coca-Cola Co., said Friday it will pay $6 billion in back taxes and interest to the United States Internal Revenue Service (IRS).
This followed the ruling of a US federal tax court Judge, Albert Lauber, in a case dating back 17 years. The IRS had claimed before the court that Coca-Cola should have reported a higher income as a result of international transfer pricing covering fiscal years 2007-09.
The dispute reached court in December 2015, shortly after the company said it notified the IRS that it owed $3.3 billion more in federal taxes and interest for the 3 years in dispute.
In its Friday statement, Coca-Cola accused the IRS of changing how it let the company calculate US income based on profits amounting to more than $9 billion from foreign licensees and affiliates.
Declaring its decision to appeal the ruling, Coca-Cola, in a statement by its Spokesperson, Scott Leith, said: “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.”
According to The Wall Street Journal, Coca-Cola said in a recent filing it would update its tax reserves if the company does not win its appeal.
