ATO Appeals Recent Federal Court Judgment Regarding Royalty Withholding Tax and Diverted Profits Tax in PepsiCo v Commissioner of Taxation

The Australian Taxation Office (ATO) has issued a release announcing its appeal of the full Federal Court of Australia judgment in PepsiCo, Inc v Commissioner of Taxation (2024) FCAFC 86 to the High Court. As previously reported, the Court found in its judgment 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, that there was no…