Coca-Cola announced Friday that it will pay $6 billion in back taxes and interest after a judgment in a case dating back nearly 20 years with the IRS.
The dispute covers fiscal years 2007-09, which is when the IRS argued that Coca-Cola should have reported higher income as a result of international transfer pricing.
“The company looks forward to the opportunity to begin the appeals process and, as part of that process, will pay the agreed liability and interest,” Coca-Cola said in a statement.
The soda company said it plans to appeal the ruling, which was handed down in two sentences by U.S. Tax Court Judge Albert Lauber.
According to The Wall Street Journal, Atlanta-based Coca-Cola said in a new filing that it would update its tax reserves if the company does not win the appeal.
Coca-Cola has 90 days to seek a review of the decision by a federal appeals court.
The Wall Street Journal reported that the company believes “it is more likely than not” that the appeals court will not overturn its tax positions, according to a regulatory report.