Breaking News: Coca-Cola to Pay Massive $6 Billion in Back Taxes and Interest
U.S. Internal Revenue Service Settlement Ends Tax Dispute
Coca-Cola Co. (NYSE: KO) has announced a major settlement with the Internal Revenue Service (IRS), agreeing to pay $6 billion in back taxes and interest. The settlement concludes a prolonged tax dispute between the beverage giant and the U.S. government.
The IRS had previously determined that Coca-Cola had underpaid its taxes by shifting profits to foreign subsidiaries. The complex dispute has been ongoing for several years and has involved multiple legal proceedings.
In a statement, Coca-Cola said that the settlement "resolves the tax dispute with the IRS and enables us to move forward." The company noted that it had made "significant changes" to its tax practices in recent years to ensure compliance with U.S. tax laws.
The settlement payment is a major financial blow to Coca-Cola, which reported net income of $10.5 billion in 2023. However, it provides certainty for the company and eliminates a significant legal liability.
The news of the settlement is expected to have a negative impact on Coca-Cola's share price when the market opens on Monday.
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