2024-08-03 04:22:29
American soft drink giant Coca-Cola has been ordered to pay some $2.7 billion in tax relief in the United States, or around $6 billion with interest, for improperly accounting for its turnover abroad during 2007. and 2009, he announced on Friday.
Published on: 03/08/2024 – 06:22
2 minutes
« Coca-Cola firmly believes that the IRS and the Federal Tax Court have misinterpreted and misapplied the existing regulations (…) and we will vigorously defend our position on appeal. », said that the group from Atlanta (Georgia) was released.
The sanction is related to the years 2007, 2008 and 2009. It represents a total sum over these three years of 2.72 billion US dollars, according to the decision made on Wednesday by Judge Albert G. Lauder, who was advised by AFP . But, with interest, the money for this tax reform rises to around $6 billion as of June 28, 2024, according to Coca-Cola’s press release and stock market document posted on July 29.
In this document, the group states that it will still be necessary to include the interest accumulated between June 28 and the actual payment – a date that is not determined at this stage – but the company also indicates that it will be reimbursed if accept the call. The group also warned that if the United States tax services decided to use the same calculation method for years after 2009, it could suffer an additional adjustment of approximately $16 billion (including interest) as of December 31, 2023.
« We expect that, between our ability to generate cash from our operations and our ability to borrow money at reasonable interest rates, we will be able to manage the extent of the potential consequences in this matter. », assured the group.
This case was launched in 2015, after an investigation by the United States tax services. They note that the giant has considered its tax revenue in the United States – by $ 9 billion in the three years under review – through the way it has established the amount of money left by the companies related in Brazil, Chile, in Costa Rica, Egypt, Ireland, Mexico and Swaziland.
These companies make concentrated products in their factories (syrups, powder) then used by hundreds of bottlers in Europe, Africa, Asia, Latin America and Australia to make the drinks. According to the tax authorities, they theoretically would have had to pay much more to Coca-Cola for the right to use its secret formulas, name and other intellectual property.
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