Coca-Cola ordered to pay $6bn in back taxes

Coca-Cola has been ordered to pay $6bn in back taxes after losing a transfer pricing case. The company plans to appeal the decision, but if the IRS prevails, Coca-Cola could owe up to $16bn in back taxes and interest. The case involves transfer pricing, a practice used by multinational corporations to allocate costs and taxable profits. The IRS has been cracking down on transfer pricing abuse, and recent Supreme Court decisions have increased the likelihood of success for parties challenging federal agencies. Other companies, including Facebook, Medtronic, and Abbott Labs, are also battling the IRS over transfer pricing. Coca-Cola maintains that it has been following the same transfer pricing methods approved by the IRS in previous audits. The company believes the case will not have a material impact on its finances and plans to vigorously defend its position on appeal.