Barnes Dennig Transfer Pricing After Tax Reform and COVID-19 120920 - BD | Page 8
IT ’ S THE REAL THING
The IRS Wins in Tax Court Against Coca-Cola 2007-2009
• Coca-Cola ( US ) licenses its trademarks , product names , logos , patents , formulas , and manufacturing processes
• Foreign affiliates utilize the IP to sell concentrate to bottlers
• IRS audited transactions with Brazil , Costa Rica , Egypt , Ireland , Mexico , and Swaziland
• US Tax Court released its decision on November 18 , 2020
• IRS issued over $ 9 billion in transfer pricing adjustments
• Taxes due $ 3.2 billion
• Argument – foreign subsidiaries earned excessive returns