Leila Carney Comments on Recent Coca-Cola Appeal to Eleventh Circuit in Bloomberg

Coca-Cola Co. is appealing a US Tax Court decision on a transfer pricing dispute related to its Brazilian affiliate companies that could cost it $2.6 billion in taxes and billions more in interest.

The company filed notice of appeal Tuesday. The Tax Court determined in July that Coca-Cola’s unpaid deficiencies for the three years at issue were $837 million in 2007, $844 million in 2008, and $923 million in 2009, in addition to interest that has yet to be assessed.

. . .

Leila Carney, a Member at Caplin & Drysdale, said the Coca-Cola appeal will provide important insight into the impact of Loper, when a law specifically grants authority to a government agency.

“While Loper Bright puts the onus on judges to interpret statutes, it would not be surprising to see some level of deference to the regulations promulgated under an explicit grant of authority, though perhaps less than in the past when deference was the broad rule,” she said.

For the full article, please visit Bloomberg Law’s website (subscription required).