Pepsi Asks Another Illinois Court to Reject Tax Dodge Claims

Pepsi asked an Illinois appeals court Wednesday to cancel a $10.9 million tax bill just months after a sister circuit upheld another assessment after finding a subsidiary isn’t tax exempt.

A state trial court ruled in January that PepsiCo Inc. should’ve included snack food subsidiary Frito-Lay North America Inc.’s income on its Illinois tax returns because Frito doesn’t operate as an exempt foreign corporation. The court upheld the Illinois Department of Revenue’s determination that Pepsi set up PepsiCo Global Mobility LLC as a shell company under Frito-Lay to exclude Frito-Lay’s earnings from its Illinois combined tax return in 2016 and ...