US-based internationally famous corporation Coca-Cola has been involved in long-running legal proceedings. The company has been found guilty of tax evasion and now faces a record fine of $6 billion.
The US Tax Court has ruled in favor of the Internal Revenue Service (IRS) in a case against the Coca-Cola Company. According to the verdict, it is obliged to pay $2.7 billion in taxes. However, with accrued interest, the total fine will amount to roughly $6 billion.
Analysts acknowledge that it is a record heavy penalty ever imposed on the American corporation. Previously, US authorities accused Coca-Cola of evading federal taxes for a decade by shifting a large portion of its income to overseas subsidiaries.
Despite this court ruling, Coca-Cola's management believes that US authorities "misinterpreted" and improperly applied the requirements of the legislation. "The company looks forward to the opportunity to begin the appellate process and, as part of that process, will pay the agreed-upon liability and interest to the IRS," Coca-Cola commented on the verdict, adding that it has 90 days to file a notice with the US Court of Appeals.
