Federal Court hands down decision in PepsiCo case, reasons to follow

The decision is expected to have far-reaching consequences as it considers the application of Australia's diverted profits tax and support for the Commissioner’s position regarding the existence of embedded royalties.

Judgment was delivered yesterday by Moshinsky J in PepsiCo, Inc v Commissioner of Taxation and the parallel proceedings relating to a subsidiary of PepsiCo (Stokely-Van Camp, Inc v Commissioner of Taxation) which owns the Gatorade brand. The ATO has wasted no time welcoming the “landmark” decision in today’s media release. The case concerned arrangements under which Pepsi and other beverages are bottled, sold and distributed in Australia. There were two main issues, being the application o...

Sign in below or register now to read the full article

Authors: Keith Swan, Paul Sorrell,

Published Date: 01 December 2023