Income tax (Cth) – Notice of assessment – Royalty withholding tax – Diverted profits tax – Where non-resident companies entered into agreements with Australian company to bottle, sell and distribute beverages – Where agreements licensed intellectual property to Australian company – Where agreements did not provide for payment of royalty for use of intellectual property – Where no payment made by Australian taxpayer to non-resident companies – Where payment made to Australian subsidiary of non-resident companies for beverage concentrate – Whether payments to subsidiary included royalty for use of intellectual property owned by non-resident companies within meaning of s 6 of Income Tax Assessment Act 1936 (Cth) ("ITAA 1936") – Whether payments paid or credited to or derived by non-resident companies within meaning of s 128B of ITAA 1936 – Whether non-resident companies liable to pay diverted profits tax under s 177J of ITAA 1936.
Words and phrases – "alternative postulate", "antecedent monetary obligation", "basis or condition", "consideration", "consideration for", "derived by", "diverted profits tax", "DPT", "DPT tax benefit", "exchange of promises", "income derived", "paid or credited", "payment by direction", "postulate", "principal purpose", "reasonable alternative", "reasonable expectation", "royalties", "royalty", "royalty withholding tax", "scheme", "single, integrated and indivisible transaction", "substance of the scheme", "tax benefit", "tax benefit in connection with the scheme".
Income Tax Assessment Act 1936 (Cth), ss 6, 128A, 128B, 177A, 177C, 177CB, 177D, 177F, 177H, 177J, 177N, 177P.
Taxation Administration Act 1953 (Cth), s 14ZZO.