The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-05-28
COCACOLA GROUP
FACES TAX SUIT
FOR &,S33,469.62
Bureau Of Internal Rev
enue Seeks To Collect
From Georgia Co.

ATLANTA, Ga, May 27.-Suit for
SO, SS3, 1882 was filed in United
States district court here today against
| the Coca Cola company Of Georgia
alleeinE unpaid income and excess pro-
fits taxes for 1919 and 90 per cent
penalty assessed by the commissioner
of internal revenue for the alleged
making of a fraudulent and false re-
turn.
The government alleges that the COM
pany paid income and excess profits
taxes totaling $1,54S,1s4.09 for 1919
when a tax of $e,103, $1,000 should
have been made.
Penalty Included
The petition sets forth that $1,000.
646.41 additional taxes are due, and
that a penalty of $2,277, S24.21, or SO
per cent of that amount is also cOllecti-
BILE because of alleged filing of fraudu-
lent and false return. The total of
these two items plus the legal interest
for March Is, 1920, the date the taxes
fell due is the total amount sought
by the government.
The government complains that the
company's net income for the period be-
ginning January 1, 1919,, and ending
September II, 1919, is $15,7S3, 292. 40
and that an excess profits tax at the
rate of 31.86 per cent totaling $685.
1886 together with income tax at
10 per cent totaling $1,075, 1884
should have been paid.
AS it was, the suit sets forth the
company paid excess profits taxes
amounting to $1,326, 22S.74 and an
income tax of 1921 $685. on a net in
come of 1854, 1924.
Against Old Company
The suit, it was explained by COM
pany 4Fficials is against the old Coca
Cola company and not against the
present corporation which is chartered
under the laws of Delaware. The Della
ware corporation purchased only the
good will, formula and all other assets
of the old Georgia corporation for $685.
100000. They say they are not liable
for unpaid taxes.
A formal statement issued by Charles
H. Gambler, president of the Coca Cola
company Georgia corporation follows ::
My attention has been called to
the suit filed by the United States gov
eminent against the Coca Cola Com
pany, the Georgia corporation, due to
additional tax assessment for the year
1919, which was based upon the as
sets of the corporation.
AT the outset it is only fair to say
that this suit can in no way involve
the Coca Cola Company, the Delaware
corporation, which corporation is now
being operated and selling the product,
Coca Cola.
THE Delaware was purchase for
value of the entire assets of the Geor-
gia corporation. 1t happens that both
companies are of the same name but
the Delaware Corporation having pur-
chased the entire assets of the Georgia
corporation for value could not be re-
sponsible for this tax.
LAS president of the Georgia cor
poration, l want to say that the tax
return for 1919 on behalf of the Geor-
gia corporation. 1t happens that both
son who was recommended as being an
expert accountant of Does Moines. Ia,
and of course that company depended
upon this tax expert to make correct
return and the return so made, we be-
lieve is correct. 1t is but fair to add
that neither our accountants nor the
attorneys representing the company had
anything to do with this return.
Il have not seen copy of the suit
that was filed and therefore cannot dis
cuss the merits of that suit"