Coca-Cola’s Tax Trial: What We Know So Far and What’s Next

Coca-Cola Co.'s court battle with the IRS is about to get even more technical, as both sides pull in specialists to wrangle fine points of transfer pricing and profit-split methods in the company’s effort to fend off a $3.3 billion tax bill.

When the trial resumes April 2 for another three-week round of arguments in U.S. Tax Court, Coca-Cola lead attorney John B. Magee is to call the company’s lead transfer pricing expert, Michael I. Cragg, to the stand to further the company’s position: that the beverage giant’s profit-creating functions—local marketing and concentrate production—are housed mostly in foreign business units, ...