IRS Wants A Lot More Than a Coke and a Smile From Coca-Cola, Co.

The Coca-Cola, Co. wants everyone to share a Coke and a smile but the IRS just wants the soft drink company to share it’s profits with the government, in the form of it’s tax bill. The IRS claims that the company has skipped out on more than $3 billion in taxes and interest due from money it earned in foreign countries. According to reports, the IRS audited Coca-Cola for the tax years 2007, 2008 and 2009. The IRS claims that the results of that audit show that the soft drink maker owes $3.3 billion in missed taxes.

So far, the IRS has not threatened Cola-Cola with any penalties. However, the agency has reportedly informed the company that it has recommended to its top lawyer that the case be litigated. For its part, Coke says that the agency’s claims have no merit. Coke is not the first American company to face these kinds of charges from the IRS, as the agency continues to fight large U.S. corporations over tax dollars for profits earned overseas. Microsoft and Amazon are also facing similar claims form the IRS.

A Coca-Cola spokesperson said that the company plans to fight the allegations and do whatever it takes legally to resolve this matter with the IRS. U.S. Corporations must pay the IRS as much as 35 percent of their total profits from around the world in taxes. However, they do not have to pay the tax on foreign profits until they move the money to the U.S. But, because the U.S. charges so much in corporate taxes, many companies simply choose to leave their foreign profits in the countries where they were earned.

Posted in ,
Is Philanthropy Good for Capitalism?

Is Philanthropy Good for Capitalism?

Is Philanthropy good for capitalism? In 2013 Zoltan J. Acs wrote the book Why Philanthropy matters.  It explores the benefits of Philanthropy on the US economy; “…philanthropy as an underappreciated force in capitalism, measures its critical influence on the free-market system, and demonstrates how American philanthropy could serve as a model for the productive reinvestment…

George McGherin

George McGherin of The McGehrin Group

Transcript of George McGherin, of the McGherin Group, interview by Alan Olsen for the American Dreams Show: Alan Olsen: Welcome to today’s show I have with me, George. McGehrin George, welcome, George McGherin: Alan, it’s good to be here. It’s good to catch up with you. Alan Olsen: So, George, you’re a founder of the…

The Flip Transaction

The Flip Transaction: Bringing Your Foreign Startup into the US Investment Market

By Roger Royse, Partner, Haynes Boone, LLP in Palo Alto, CA. The flip transaction, bringing your foreign startup into the US investment market.  Non-US startups often arrive at the point where they wish to seek funding from a US venture capital firm or establish a presence in the US.  Sophisticated investors tend to prefer to…

Derek Lobo

Derek Lobo of SVN Rock Advisors

Derek Lobo of SVN Rock Advisors interview transcript, by Alan Olsen for the American Dreams Show: Alan Olsen: Can you give us your background of how you got to where you are today and start with your educational experience and the entrepreneurial model that that you built here? Derek Lobo: Well, you know, I guess…