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Coca-Cola Says IRS Demanding $3.3B in Taxes

  • VOA News

FILE - Coke says the Internal Revenue Service gave little warning of its claim and might go to court to collect the funds.

FILE - Coke says the Internal Revenue Service gave little warning of its claim and might go to court to collect the funds.

Coca-Cola Co. says it has received notice from the Internal Revenue Service that it owes about $3.3 billion in extra taxes, plus interest.

In a securities filing, the soft drink giant said Friday that it was fighting the huge bill.

Coke said the dispute relates to how it reports income from foreign licensing of manufacturing, distribution, sale, marketing and promotion of products in overseas markets.

The company said it had followed the methodology for the licenses outlined in a 1996 agreement with the IRS.

It said the IRS had given little warning of the claim before issuing it, and had already told Coca-Cola it was weighing going to court to collect the funds.

"The company firmly believes that the assessments are without merit and plans to pursue all administrative and judicial remedies necessary to resolve this matter," Coke said in the filing.

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