Commissioner of Taxation v. PepsiCo, Inc.
Commissioner of Taxation v. Stokely-Van Camp, Inc.
Commissioner of Taxation v. PepsiCo, Inc.
Commissioner of Taxation v. PepsiCo, Inc.
Commissioner of Taxation v. Stokely-Van Camp, Inc.
Commissioner of Taxation v. Stokely-Van Camp, Inc

Lower Court Judgment

25/06/2024 Federal Court of Australia (Perram, Colvin, Jackman JJ)

[2024] FCAFC 86

Catchwords

Taxation – royalty withholding tax – diverted profits tax – where non-resident taxpayer entered into exclusive bottling agreements (“EBAs”) with Australian company (SAPL) for bottling and sale of PepsiCo branded beverages – where EBAs included licence of taxpayers’ trademarks and other intellectual property but did not provide for royalty – whether Full Federal Court ought to have found payments made under EBAs included “royalty” paid “as consideration for” use of or right to use intellectual property licensed to SAPL within meaning of s 6(1) Income Tax Assessment Act 1936 (Cth) (“ITAA”) – whether Full Court ought to have found royalty component of EBA was income “derived” by and “paid to” PepsiCo under s 128(2B) ITAA and thereby withholding tax payable under s 128B(5A) – whether if no royalty withholding tax payable Full Court ought to have found liability for diverted profits tax for purposes of ss 177J and 177P ITAA.