Coca-Cola Cries Foul on IRS Tax Model in Transfer Pricing Tiff

The Coca-Cola Co. accused the IRS of trying to “game” the Tax Code and relying on errors from the US Tax Court to uphold a tax adjustment that could cost the company $12 billion.

The company used a tax scheme the IRS previously endorsed when pricing the marketing investments and intangible intellectual property it paid several offshore affiliates, it told the US Court of Appeals for the Eleventh Circuit. Coca-Cola accused the government of treating it differently than other companies in an “arbitrary” and “opportunistic” way in increasing its tax burden, while claiming its actions were unreviewable.

The government’s model ...