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High Court decision in Commissioner of Taxation v PepsiCo, Inc

Australian Taxation Office

The Australian Taxation Office (ATO) acknowledges the High Court decisions in Commissioner of Taxation v PepsiCo, Inc. and Commission of Taxation v Stokely-Van Camp, Inc.

The High Court’s decision confirms PepsiCo, Inc and Stokely-Van Camp, Inc are not liable to pay royalty withholding tax nor diverted profits tax in the matters in dispute.

The ATO welcomes the High Court’s clarification of these important areas of law.

We are currently considering this decision including any broader impact it may 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.

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