Skip to content
How a Leading Pharmaceutical Company Unified Tax Operations with OrbitaxHow AMG Brought Pillar Two Compliance In-House with Orbitax
EYEY

Australian Federal Court finds embedded royalty in arm's-length contract

|Tax Alerts, Information Reporting, National/Federal Taxation, Consumer Products & Retail|Australia
Australia
  • The Court found that a royalty was paid, notwithstanding that the contract had not expressly provided for it.
  • Royalty withholding tax was found to be applicable.
  • The Court found that diverted profits tax (DPT) elements were satisfied, but DPT was not applied due to Court's conclusions on royalty withholding tax.
  • The decision is expected to be influential in actions of Commissioner of Taxation going forward.

On 30 November 2023, the Australian Federal Court (Court) delivered a decision in PepsiCo, In…

Continue reading with a Pro Subscription

Unlock full Orbitax Tax News content, including a historical database of tax news, alerts, and analysis from our network of tax experts, all tailored to your company footprint. Now includes Orbitax XatBot AI Tax Assistant.

Free trial available. Cancel anytime. Free Orbitax account required.

Already a Pro or Pro+ subscriber? Sign in to Orbitax to continue reading.