Coca-Cola Confirms Appeal in Major Tax Case After 3M Ruling

Coca-Cola is moving forward with the appeals process after the IRS victory at the US Tax Court against 3M.

The case involving Coca-Cola, where the company argued that Brazilian law would have limited royalty rates below the IRS rates in tax bills totaling more than $3.4 billion, was put on hold until the 3M ruling.

The Tax Court ruled last week that the IRS was permitted to reallocate 3M’s income from a Brazilian subsidiary to the US parent company for tax purposes.

The Tax Court will now apply this opinion to Coca-Cola and “ultimately render a final decision,” allowing ...