Category: Coca-Cola
Facebook, Coke could face tax hit after ruling against Medtronic
Last week, Medtronic Plc suffered a legal setback in its bid to avoid a $1.4 billion U.S. tax bill — a ruling that may have costly implications for other multinationals battling the Internal Revenue Service over the use of overseas payments to lower their taxes. Companies including Facebook Inc. and… – Continue reading
Multinationals Warned on Coke’s $41 Million Israel Tax Claim
Israel’s $41 million tax demand from the Coca-Cola Co. on royalties from its Israeli licensee could mark the start of a wave of claims against U.S. and other multinationals with similar business operations in the country. That could lead to a conflict with U.S. and other authorities about which country… – Continue reading
Worldwide: The OECD’s Conquest Of Domestic Tax Codes: Understanding The Costs And Consequences Of The BEPS Project
Authored by IFC Media Recent global events from the release of the Panama Papers to a series of high-profile inversions have given international tax regulators both rhetorical ammunition and public support to execute a global crackdown on multinational tax planning. The goal is to increase total taxes paid by global… – Continue reading
Vietnam plans new transfer pricing rules to curb tax fraud
Various agencies are expected to work together to draft a decree and keep the practice in check. In a move that signals Vietnam’s apparent stronger stance against tax evasion, the Ministry of Finance has sought to work with other ministries and agencies to draft a new decree on transfer pricing… – Continue reading
Corporations paid no tax at Rio Olympics
Coca-Cola, McDonald’s, Visa and the rest of the corporate sponsors of the August 5–21 Olympic Games in Rio de Janeiro won’t be paying any taxes on the money they earn due to a tax exemption law that is set to cost Brazil hundreds of millions of dollars. The exemption, which… – Continue reading
Republicans Take New Tack on Taxing Companies’ Overseas Profits
Democrats are likely to object to the House GOP’s and Donald Trump’s plans for sharply lower rates President Ronald Reagan once chided government’s approach to the economy as following this mantra: “If it moves, tax it.” Today’s Republicans are following Mr. Reagan’s ideas by trying the exact opposite approach. The… – Continue reading
Being Named In The Panama Papers Doesn’t Mean You Broke the Law
The Panama Papers have recently drawn a great deal of investigation and public attention. Over 230,000 organizations and individuals were named as having set up offshore companies in tax haven like the British Virgin Islands, Panama, the Cayman Islands or the Bahamas. The public’s initial reaction was suspicion and anger toward… – Continue reading
Multinational conglomerates escape transfer-pricing charge
VietNamNet Bridge – The agreements on double taxation avoidance that Vietnam has signed with other countries is one of the reasons that have made it impossible for state agencies to clarify the suspected cases of multinational conglomerates conducting transfer pricing. A lot of multinational conglomerates such as Coca-Cola, Metro Cash… – Continue reading
Is It the Real Thing? The IRS Makes $9+ Billion of Transfer Pricing Adjustments Against The Coca-Cola Company
On September 17, 2015, the IRS issued a statutory notice of deficiency to the Coca-Cola Company, increasing its federal income taxes for 2007-2009 by $3.3 billion, based primarily on transfer pricing adjustments exceeding $9 billion. On December 14, 2015, Coca-Cola petitioned the U.S. Tax Court to overturn the adjustments. This… – Continue reading
Coca-Cola Fights $9.4 Billion Transfer Pricing Adjustment
Dec. 14 — The Coca-Cola Co. filed a petition in U.S. Tax Court challenging a proposed $9.4 billion income adjustment related to the company’s transfer pricing for tax years 2007-09 (Coca-Cola Co. v. Commissioner, T.C., petition filed, 12/14/15). If the adjustment is sustained, the company could face a tax bill… – Continue reading
Abandoned Yahoo Spinoff a Sign That Tax Is Fading as a Deal Driver
Yahoo has reportedly abandoned its plan to spin off its stake in Alibaba. Yahoo’s proposed spinoff had been driven by tax concerns. In a world without taxes, Yahoo could have simply sold its Alibaba shares and distributed the proceeds to shareholders. Yahoo will now concentrate on other strategic options, including… – Continue reading
Coca-Cola Vietnam to go under scrutiny for transfer pricing: taxman
The Ho Chi Minh City tax department has set up an anti-transfer pricing task force and is calling for a probe to be launched into alleged transfer pricing practices at Coca-Cola Vietnam, an official said on Monday. The new force is tasked with watching businesses that show signs of the… – Continue reading
India: No Transfer Pricing Adjustment In Cases Where AE Is From High Tax Jurisdiction: Mumbai Tribunal
Transfer pricing adjustment cannot be made in a case where the tax rate in the country of the Associated Enterprise is higher than the Indian rate and where, accordingly, establishment of tax avoidance or manipulation of prices or establishment of shifting of profits is not possible. Only after proper application… – Continue reading
Taxes: Google quizzed by EU
Brussels – Google and Facebook were among US companies facing questions on Monday from European Union lawmakers about their tax-reducing techniques, a month after regional antitrust regulators raised the stakes by ordering Starbucks and a Fiat Chrysler Automobiles NV unit to repay millions of euros in back taxes. The queries… – Continue reading
Taxing issue: multinationals respond to EP proposals to make them pay their fair share
€1 trillion a year: that’s how much tax evasion and tax avoidance is costing European tax payers every year, according to the European Commission. Parliament set up a special committee to investigate these practices in the wake of the Luxleaks scandals and came up with plans to ensure multinationals pay… – Continue reading
EU calls corporations to account for low-tax deals
European Union lawmakers have called 13 multinational companies to a meeting next week to talk about the low-tax deals they have struck with EU jurisdictions, reports CBC News. Among the companies to be questioned on Nov. 16 will be Amazon.com, Disney, Coca-Cola Co, Anheuser-Busch InBev NV, HSBC Holdings, Ikea Group… – Continue reading
LuxLeaks: Little change in tax avoidance loopholes one year on from revelations
British MEP Anneliese Dodds has accused national governments of hampering progress in tackling corporate tax dodging, warning that EU capitals are “far too focussed on their own self-interests”. On the anniversary of the breaking of the LuxLeaks scandal, Dodds said MEPs had made some progress in stamping out aggressive tax… – Continue reading
IRS Calls on Coca-Cola to Pay Up
Coca-Cola might owe an additional $3.3 billion in federal income taxes following an audit, says the Internal Revenue Service (IRS). Following a five year audit of the company, the IRS concluded that the company’s strategy of lowering its taxable income through transfer pricing, underestimates the amount the company should’ve been… – Continue reading
Facebook, HSBC, Coca-Cola blacklisted by Socialist MEPs
Center-left MEPs turn up the heat on multinationals refusing to exchange views on tax policy. Google, Facebook, HSBC and AB Inbev are among a group of multinationals that have been “banned” from meeting MEPs from the European Parliament’s center-left grouping unless the companies agree to appear before a special committee… – Continue reading
Coca-Cola Vietnam finally pays tax after claiming losses for 20 years
The Vietnamese arm of U.S. soft drink giant Coca-Cola has paid its 2014 corporate tax, worth some US$20 million, for the first time in two decades due to losses, according to a report the firm submitted to Ho Chi Minh City authorities in May. The taxable profit of the company… – Continue reading
There is no evidence of Coca-Cola transfer pricing: Minister
VietNamNet Bridge – Minister of Planning and Investment Bui Quang Vinh has disagreed with the opinion that Coca-Cola has been conducting transfer pricing in Vietnam, affirming that the soft drink manufacturer is innocent until proven guilty. Vinh made the statement at the Vietnam Global Investment Forum held in Hanoi in… – Continue reading
AFTER 5-YEAR-LONG TAX AUDIT, COCA-COLA OWES THE IRS AN EXTRA $3.3 BLN
On Friday, Coca-Cola Co. said that it may owe the IRS an extra $3.3 billion in federal income taxes. According to the company, the Internal Revenue Service found after a five-year-long audit that the soft drink giant may owe the federal government $3.3 billion along with interest for the 2007… – Continue reading
Tax inversions are a symptom of much bigger problems with America’s corporate-tax regime
IT IS the corporate equivalent of burning the American flag. A “tax inversion” is a manoeuvre in which a (usually American) firm acquires or merges with a foreign rival, then shifts its domicile abroad to reap tax benefits. A spate of such deals last year led Barack Obama to brand… – Continue reading
European Parliament mulls lobby ban for big companies
The European Parliament’s special tax committee is seeking to punish multinationals for refusing to send representatives to a hearing in June by revoking lobbyist passes and preventing access to senior European Commission officials. AB InBev, AmazonEU, Barclays Group, Fiat Chrysler Automobiles, Google, HSBC Bank, Ikea, McDonalds and The Coca-Cola Company… – Continue reading
Corporate group: WH tax proposals off base
A corporate tax reform coalition blasted President Obama’s international tax proposals on Tuesday, saying they would accelerate the sort of offshore maneuvers that Democrats want to eliminate. The Alliance for Competitive Taxation said that the White House’s proposal to impose a minimum tax on multinational corporations’ foreign earnings would only… – Continue reading
EU Cracks Down on Tax Dodges by Multinationals From Disney to Coke
Luxembourg, home of European Commission President Jean-Claude Juncker, is the EU’s richest country and a notorious tax haven for multinationals including Disney, Pepsi, Coca-Cola and Office Depot — among more than 300 firms who allegedly shifted profits to Luxembourg through sweetheart tax deals uncovered in last year’s ‘LuxLeaks scandal. The… – Continue reading
Global tax issues to impact GCC businesses
In November 2014 the WikiLeaks scandal known as “LuxLeaks”, the large scale exposure of over 340 companies (such as IKEA, Coca-Cola and Disney) who paid a rate of one per cent or less tax on profits moved to Luxembourg by advance pricing arrangements has affected all nationalities and brought the… – Continue reading
Transfer pricing: the other side of the FDI coin
VietNamNet Bridge – How to deal with transfer pricing – whether to view it as an inevitable part of foreign direct investment (FDI) or take drastic measures to stop it – remains a controversial matter among Vietnamese. METRO Cash & Carry Vietnam (MCC) will have to pay VND507 billion (US$23.8… – Continue reading
Transfer-pricing cases worse than expected, inspectors find
VietNamNet Bridge –Inspectors looking for transfer-pricing cases examined 2,866 enterprises in 2014, discovering that the actual losses incurred by businesses was VND5.8 trillion lower than reported. The inspectors also attempted to collect VND1.7 trillion worth of tax arrears. The deputy general director of the General Department of Taxation (GDT), Tran… – Continue reading
Apple to IBM hoard $206b abroad to avoid US tax
The largest US-based companies added $206 billion to their stockpiles of offshore profits last year, parking earnings in low-tax countries until Congress gives them a reason not to. The multinational companies have accumulated $1.95 trillion outside the US, up 11.8 per cent from a year earlier, according to securities filings… – Continue reading
