There is gas in Coca’s accounts. The French subsidiary of the American giant, Coca-Cola Services France (CCSF), was the subject of tax audits covering the years 2014 to 2023. Following a recovery, CCSF paid more than 42 million euros to the tax authorities in May and set aside a total of 103,876,169 euros, in order to “cover the outflows (…) linked to the settlement of tax adjustments”, according to its official accounts consulted by AFP on Wednesday.
The company, which achieved a turnover of 104.2 million euros in 2023, specifies that it derives its income, on the one hand, from “marketing services” to another Coca-Cola subsidiary, CCS NV Be, and, on the other hand, from the sale of juices “intended for the McDonald’s business” to the logistics company Martin-Brower France.
Other adjustments considered
This is not the only company linked to the American giant, sponsor of the Paris Olympic Games, to have found itself in the sights of the French tax authorities. Last January, AFP learned that the tax authorities were demanding 370 million euros in tax adjustments from Coca-Cola Europacific Partners France (CCEP), the French bottler of the famous soda, for the 2014 and 2015 financial years as well as 182.2 million euros for 2016, according to its financial documentation for the year 2022.
Adjustments of 13.1 million euros for 2018 and 16.2 million euros for 2019 are also “considered”, according to the same source.
Disputes in the drawers
In the financial filing, the company said it had “strong defenses to challenge the tax authorities’ position” and said it had not set aside any money for this purpose.
These adjustments “mainly” relate to 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 company said in its financial documentation, without giving further details.