Coca-Cola is one of the most recognized brands in the world. The multinational corporation, based in Atlanta, Georgia, has subsidiaries around the globe. In 2021, Coca-Cola lost a $3 billion lawsuit in Tax Court related to transfer pricing and its syrup subsidiaries. This case study examines the issue of transfer pricing for use in Advanced Accounting and Advanced Tax courses. It can also be used to apply ethical frameworks to accounting decisions. After completing this case, students will be able to explain why companies and tax jurisdictions care about transfer pricing, the alternatives available for setting transfer prices, and the importance of tax planning for multinational corporations. Students can also evaluate the ethical considerations associated with shifting profits to low-tax jurisdictions.
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Research Article|
November 28 2022
A Different Kind of Cola War: Coca-Cola versus the IRS
John D Keyser
;
John D Keyser
Case Western Reserve University
Assistant Professor
Accountancy
10900 Euclid Avenue
UNITED STATES
Cleveland
Ohio
44106
2163688895
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Erica Neuman
Erica Neuman
UNITED STATES
University of Dayton,
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Received:
December 16 2021
Revision Received:
June 17 2022
Revision Received:
September 11 2022
Revision Received:
October 11 2022
Accepted:
October 27 2022
Online Issn: 1558-7983
Print Issn: 0739-3172
2022
Issues in Accounting Education (2022)
Citation
John D Keyser, Erica Neuman; A Different Kind of Cola War: Coca-Cola versus the IRS. Issues in Accounting Education 2022; https://doi.org/10.2308/ISSUES-2021-127
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