Coca-Cola announced on Friday that it will pay $6 billion in back taxes and interest to the IRS while appealing a federal tax court ruling related to tax disputes from 2007 to 2009.
The company plans to continue its legal fight, arguing that the IRS has incorrectly adjusted its taxable income calculation based on profits from foreign affiliates.
Despite paying the settlement, Coca-Cola believes it was wrongly interpreted by the IRS and expects to recover some or all of the amount if it wins the appeal.
The case, which began in December 2015, involves disagreements over how Coca-Cola reported income from its foreign operations.
The company has 90 days to file its appeal and remains optimistic about its chances in the appellate process.
Peoplesmind