Illinois
Pepsi Stuck With Illinois Penalty for Income Tax Avoidance Plan
PepsiCo Inc. did not persuade an Illinois tribunal to abate $2.1 million in penalties the state imposed for failure to pay earnings tax.
The Illinois Unbiased Tax Tribunal dominated final yr that Pepsi arrange PepsiCo World Mobility as a “shell company with no financial actuality” to acknowledge $14 million per yr in state earnings tax financial savings in 13 states. In an opinion posted Wednesday, the tribunal upheld the 20% late penalty the state imposed on its evaluation of further taxes.
“If PepsiCo discovered a reputable option to cut back its Illinois earnings taxes to zero for a tax yr,” Chief …