Australian High Court Finds PepsiCo Not Liable to Pay Royalty Withholding Tax Nor Diverted Profits Tax

The Australian Taxation Office (ATO) has issued a release acknowledging the recent High Court decision in PepsiCo Inc v Commissioner of Taxation. As previously reported, the ATO had appealed to the High Court an earlier decision of the full Federal Court of Australia, which found that payments made by Schweppes Australia to purchase concentrate to make beverages from PepsiCo did not include any component that was a taxable royalty for the use of PepsiCo's intellectual property and, further…