PepsiCo in the High Court of Australia: Last Drinks for the Commissioner of Taxation
Abstract
On 13 August 2025, the High Court of Australia ruled 4:3 for PepsiCo, holding that payments to an unrelated distributor contained no embedded royalties and that no income was “derived” for withholding tax purposes. In Australia’s first diverted profits tax case, the court also found no tax benefit, with significant implications for multinationals and the Australian Taxation Office’s interpretive approach.
Fields of Study & Subjects
Commonwealth
Australian Politics and Federalism
Legal Language and Interpretation
Taxation and Legal Issues
Publication details
- Journal / source
- Bulletin for international taxation
- Publisher
- IBFD
- Volume
- 80
- Issue
- 2
- Publication date
- 12 January 2026
- Language
- EN