The French tax authorities, which were demanding more than 550 million euros from the French bottler of Coca-Cola (CCEP), have “already abandoned the procedure” covering the period from 2014 to 2017, and «discussions constructives» are continuing for 2018 and 2019, AFP learned from the company on Thursday.
“The tax administration has already abandoned the procedure for the financial years 2014 to 2017”said Coca-Cola Europacific Partners France (CCEP), the French bottler of the famous soda, in a statement sent to AFP on Thursday. “Furthermore, within the usual framework of the exchanges that the company can have with the authorities, constructive discussions continue concerning the 2018 and 2019 financial years”the company further states.
CCEP had been asked by Bercy to pay 370 million euros in adjustments for the 2014 and 2015 financial years and 182.2 million euros for 2016, according to its financial documentation for the year 2022, filed in September 2023 with the commercial court. In its accounts for the year 2023 this time, filed in July 2024 with the Nanterre commercial court and consulted Thursday by AFP, the company indicated that these adjustments “were extended to part of the year 2017, without any major impact on the cumulative amounts notified”.
Coca-Cola tax recovery
In the meantime, the tax authorities have abandoned part of the procedure, a source close to the company told AFP. The tax authorities were questioning the conditions under which CCEP obtains its concentrate (which is then used to produce sodas such as Coca-Cola, Fanta or Sprite) from The Coca-Cola Company in the United States.
The adjustments for the 2018 and 2019 financial years relate to: “intra-group services”for smaller amounts: 13.1 million euros for 2018 and 16.2 million euros for 2019. The bottler, which indicates that it employs 2,500 people in France, where it has five factories, achieved in 2023 2.8 billion euros in turnover (+8.9%), for 92.8 million euros in net profit (+4.3%).
Another French subsidiary, Coca-Cola Services France (CCSF), paid more than 42 million euros in May following a recovery covering 2014 and 2015, and set aside a total of nearly 104 million euros.
The American parent company is the subject of a gigantic tax adjustment in the United States, to the tune of at least six billion dollars including interest, for having incorrectly accounted for its turnover abroad between 2007 and 2009. It has appealed.
