The High Court of Australia has delivered its decision in the PepsiCo case, confirming that the multinational is not liable to pay royalty withholding tax nor diverted profits tax.

In a media release, the Australian Taxation Office (ATO) acknowledged the High Court decision, and said they were currently considering this decision including any broader impact it might have on the reasoning set out in draft Taxation Ruling TR 2024/D1 Income tax: royalties – character of payments in respect of software and intellectual property rights.

 

Austaxpolicy articles

PepsiCo Case: High Court of Australia Revisits the Income Tax General Anti-Avoidance Rule, by Kate Roff (21 April 2025)

PepsiCo Case: Were the 2013 Amendments to the Income Tax General Anti-Avoidance Rule Effective? By Kate Roff (23 April 2025)

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