Coca-Cola is preparing for a pivotal court battle that could determine whether it owes more than $20 billion in additional taxes and interest tied to international profit allocation. The dispute, set to be argued this week before the 11th U.S. Circuit Court of Appeals, centers on whether the company improperly shifted profits to lower-tax jurisdictions through internal licensing and transfer-pricing arrangements. The IRS prevailed in Tax Court in 2020, and Coca-Cola is now seeking to overturn that ruling. The company has already paid roughly $6 billion in taxes and interest related to the dispute, and estimates that an adverse ruling extending to later tax years could result in an additional $14 billion liability and raise its effective tax rate. A ruling is expected later this year, though further appeals remain possible.
The Coca-Cola CompanyCoca-Cola faces a $20 billion tax dispute in appeals court over profit shifting, with an adverse ruling potentially adding $14 billion liability and raising effective tax rate.
Coca-Cola Europacific Partners PLC