Coca-Cola on the Hook for Most of $3.3 Billion Tax Bill
A U.S. Tax Court judge ruled Coca-Cola (NYSE: KO) shifted too much of the profit it generated between 2007 and 2009 to foreign subsidiaries and is now liable for much of the $3.3 billion in taxes the IRS has tried to assess the beverage giant, The Wall Street Journal reported Thursday.
Yet the judge also ruled the company properly used a dividend offset treatment paid by its foreign manufacturing affiliates to satisfy royalty obligations. It means some $1.8 billion in IRS reallocations have to be made, reducing the amount to be paid.
Coke vows to defend its position, but has previously noted an adverse ruling would have a material impact on the company.
Source Fool.com
