Coca-Cola announced Friday that it will pay $6 billion in back taxes and interest following a settlement with the IRS in a lawsuit dating back nearly two decades.
The dispute covers fiscal years 2007-2009, with the IRS alleging that Coca-Cola should have reported higher revenues as a result of international transfer pricing.
“We look forward to the opportunity to begin the appeals process and intend to pay the agreed upon debt plus interest as part of that process,” Coca-Cola said in a statement.
The company said it plans to appeal the two-sentence ruling by U.S. Tax Court Judge Albert Lauber.
Atlanta-based Coca-Cola said in a recent filing that it would update its tax reserves if it is not successful in its appeal, according to The Wall Street Journal.
Coca-Cola has 90 days to ask a federal appeals court to review the ruling.
The Wall Street Journal reported that, according to a regulatory filing, the company believes it’s “likely” the appeals court will not reject its tax position.
