Coca-Cola faces $6 billion tax penalty by US Court

6 billion dollars: this is how much Coca Cola Company is required to pay for unpaid taxes from 2007 to 2009, as established by a recent ruling. But the multinational is ready to appeal

Coca-Cola Company, notorious for being one of the world’s major polluters, is again making headlines, this time due to a substantial penalty imposed by the US Tax Court. The company has been ordered to pay a staggering $6 billion, including interest, in a case brought by the US Internal Revenue Service (IRS). This amount covers taxes on foreign sales that Coca-Cola allegedly failed to pay between 2007 and 2009.

However, the beverage giant has announced its intention to appeal the decision to assert its position.

Coca-Cola to appeal

Coca-Cola firmly believes that the IRS and the US Tax Court have misinterpreted and misapplied the relevant regulations and will vigorously defend its stance on appeal. The multinational corporation stated in a press release,

“Coca-Cola believes strongly that the IRS and the US Tax Court have improperly interpreted and applied the regulations in this case and will vigorously defend its position on appeal.” The company looks forward to the opportunity to commence the appeals process and, as part of that process, will pay the agreed liability and interest to the IRS. In line with its goal of maximum transparency, the company also provided guidance on the potential outcome should it not succeed in its appeal.

Coca-Cola Company, which is confident it will prevail in the nearly 20-year legal dispute, will have 90 days to file a notice of appeal with the US Court.

Source: Coca Cola Company