Coca-Cola Must Pay Bulk of $3.4 Billion Tax Bill, Court Says (4)

Coca-Cola Co. will remain on the hook for the bulk of a $3.4 billion IRS tax bill linked to multinational operations to produce the company’s famous beverages.

The case is rooted in a dispute over how Coca-Cola shifted its profits to various foreign affiliates operating plants in Brazil, Ireland, and several other countries. Brazil and Ireland have lower corporate tax rates than the U.S., bringing tax savings to companies doing business there.

The Tax Court’s Wednesday decision upheld two IRS adjustments that had contributed to increasing Coca-Cola’s 2007-2009 taxable income by more than $9 billion. But the court ...