Kansas Dept. of Revenue v. Coca Cola Co‪.‬

The opinion of the court was delivered by This is an appeal by the defendant, The Coca Cola Company (Coke), from an order of the Shawnee County District Court compelling compliance with interrogatories and a subpoena duces tecum issued by the Director of Revenue in connection with a hearing on an assessment of additional income tax liability. The procedural history of this matter is as follows. The Department of Revenue conducted an audit, which resulted in an assessment of additional income tax against Coca Cola. This additional assessment was based on the Department's conclusion that income from certain foreign subsidiaries should be taxable because of a unitary relationship between Coke and the subsidiaries. See the Uniform Division of Income for Tax Purposes Act, K.S.A. 79-3271 et seq. The taxpayer timely petitioned the director for a hearing on this assessment. K.S.A. 79-3226. A hearing was held on April 19, 1983, at which time one witness testified on behalf of the taxpayer. The matter was [240 Kan. 549]