CANADA: Coke faces $66m tax sting from Canadian investigation
It has revealed that Canadian tax investigators are examining how Coca-Cola prices the concentrate it uses to produce its drinks and whether the company charged too much to its bottling operations to keep both its Canadian profits and therefore taxes low.
The concentrate is made in Puerto Rico where taxes are substantially lower.
Charging an inflated price to the Canadian operation would earn the concentrate subsidiary more money, thereby exposing more Coca-Cola profits to the easy-going Puerto Rican taxman, while starving the tax-hungry Canadian authorities of money.
The audit period being investigated is between 1990 to 1997, when the company was being traded as Coca-Cola Beverages in Canada. This is before it was incorporated in the multi-national's US operation, being bought by Atlanta-based bottler Coca-Cola Enterprises in 1997.
During the period being audited, Coca-Cola in Canada experienced losses or made small profits. For instance in 1995, it made C$4m on sales of C$930m worth of soft drinks.
That year, the company paid C$160m to its subsidiary for concentrates, marketing and other services.
The Globe and Mail said that representatives from Coke and federal officials from the Canadian government have been meeting for several months to discuss possible solutions to settle the issue.
Dairy, functional and premium juices were the winners, water continued to grow, whilst carbonates and squashes lagged behind in the 2004 UK soft drinks race, according to the recently published Britvi...
A recent report on the UK soft drinks market showed that growth in non-carbonates at the expense of traditional carbonated soft drinks is much less marked in the on-premise sector than in the take-hom...
Coca-Cola Enterprises looks ready to axe around 170 jobs from its operations in the UK....
The president and CEO of Coca-Cola Enterprises is quitting the company....
Coca-Cola Bottling Company Consolidated has declared a dividend for the fourth quarter of 2005 of US$0.25 per share on shares of the the North Carolina-based soft drinks company's common stock and cla...
The North Carolina-based soft drinks bottler, Coca-Cola Bottling Co., posted earnings for the second quarter of 2005 of US$11.5m, against US$10.6m in the second quarter of 2004....
Coca-Cola Bottling Co. has declared a dividend for the third quarter of 2005 of US$.25 per share on shares of the company's common stock and class B common stock payable on August 26, 2005, to shareho...
Coca-Cola Enterprises has announced the election of five officers to its corporate and North American Business Unit management teams....
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- Is Brown-Forman at the end of the SoCo road?
- Is time right for TWE to move for Diageo's wines?
- Will a sexed-up SABMiller tempt AB InBev?
- Are we kidding ourselves over craft spirits?
- Diageo secures Xerox Corp CFO as finance head
- Tesco pulls several Carlsberg SKUs in UK
- Diageo, Treasury Wine Estates quiet on wine sale
- Former Pernod Ricard exec joins Wakefield Wines
- Inver House Distillers posts FY profits leap
- The IWSR Duty Free/Travel Retail Summary Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research