Background
PepsiCo, Inc. v. Commissioner of Taxation [2023] FCA 1490.
Engagement
Ocean Tomo, a part of J.S. Held, was engaged as an expert witness by Australian law firm MinterEllison on behalf of the Commissioner of Taxation.
Results
The Federal Court of Australia published its judgement in PepsiCo, Inc. v. Commissioner of Taxation [2023] FCA 1490. Ocean Tomo, a part of J.S. Held, was engaged as an expert witness by Australian law firm MinterEllison on behalf of the Commissioner of Taxation who was successful in the proceedings. This decision confirms PepsiCo, Inc. is liable for royalty withholding tax and, in the alternative, diverted profits tax would apply. This is the first time a court has considered the diverted profits tax – a new law which aims to prevent the diversion of profits offshore.