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The Internal Revenue Service has opened an investigation to determine whether Coca-Cola is overproducing its products to increase its profits in the Manaus free zone, where its plant is located. This survey comes at a time when remittances from the Brazilian subsidiary in the United States increased by nearly R $ 1 billion between 2016 and last year.
Since 2015, the US tax authorities have charged Coca $ 3.3 billion. $ 13 billion) in royalties owed by seven countries, including Brazil.
Coca-Cola has already been notified by Revenue. The company denies any irregularity.
The persons accompanying the investigation claim that Coca-Cola is in the line of the auditors because it is suspected that the subsidiary took advantage of the tax benefits of the free trade area and overvalued its
According to Tax rules in effect until May of this year, for every R $ 100 sold in concentrate, bottlers generated R $ 20 in tax credits, which can be used for: Income and CSLL
Coca-Cola executives must explain why the manufacturer sells the kilo of syrup for about R $ 200 and exports the product for about R $ 20.
This situation has already been questioned by the company's competitors who have access to the export system managed by the Ministry of Industry and Foreign Trade.
As most of the conditioners belong to Coca-Cola itself, it is suspected that this would minimize the payment of taxes and that the profits from its plant in the free zone would be reduced of the group.
This increase would have allowed remittances
According to the report, remittances from the Brazilian subsidiary to the parent company rose from R $ 1.5 billion in 2016 to R $ 2.4 billion in 2017
Since 2015, Coca-Cola and the Internal Revenue Service (IRS) have discussed the payment of the $ 3.3 billion tax debt.
But US tax authorities have estimated that Coca-Cola was charging less than it should for the right to manufacture and sell the drink in Brazil, Chile and Costa Rica. , Egypt, Ireland, Mexico and Switzerland between 2007 and 2009.
Only coca bottlers or the like generate about 60% of all IPI (industrial goods tax) credits from the Manaus Free Zone [19659003] 2016, the beverage sector generated 2 billion reais of credits in the region. After paying R $ 767 million in IPI, companies ended up with R $ 1.2 billion to offset taxes.
In other words, the industry generates more credits than it needs to pay taxes effectively.
The measure was part of the compensation for the reduction of taxes on diesel, negotiated during the stoppage of the truck, in May
If so, it is still possible, according to those who accompany the investigations, that it is possible to restore the rate of 20%.
There is no illegality in the generation of credits. is confirmed, Coca-Cola will be evaluated and will have to refund the taxes due.
Coca-Cola vehemently denied the alleged irregularities. Through his advice, the company said that under Brazilian law, tax benefits can not be transferred abroad and must be reinvested in Brazil.
"We have been active for 76 years in Brazil and for 28 years in the Manaus Free Zone, still in compliance with the legislation in force, as evidenced by the annual external audits and concession agencies," he said.
Coca-Cola continues to criticize the Brazilian tax burden. "Brazil's non-alcoholic drinks sector has the highest tax burden in Latin America," he said.
According to the company, the current percentage of taxes on soft drinks is 43% – on average, twice "
" Each year, the soft drink industry generates 10 billion reais of taxes " , did he declare. Coca-Cola also said that the US tax collection had no merit and that it was planning to take all the administrative and judicial measures to resolve this problem.
The Revenue declined to comment on the case.
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