Pepsi Fails to Get Illinois Top Court Review of Tax Dodge Ruling

PepsiCo Inc. is stuck with an appeals court’s determination that it illegally set up a subsidiary as a tax shelter after the Illinois Supreme Court declined its petition for review Wednesday.

The company wanted the justices to overturn a March state appeals court ruling that Pepsi created PepsiCo Global Mobility under Frito-Lay North America Inc. as a “shell corporation with no economic reality” in order to recognize $14 million per year in income tax savings in 13 states from 2011-2013.

• The question of who employed the expats played into the appeals court’s decision to reject Pepsi’s characterization of Frito-Lay as ...