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Consumer, Food & Retail Insights

| less than a minute read

PepsiCo Full Federal Court Decision: Overturns the November, 2023 Decision on the Application of Royalty Withholding Tax and Diverted Profits Tax

Our Australian tax team have reported on a critical decision from the Full Federal Court, with a majority decision that held payments under Exclusive Bottling Agreements with PepsiCo and SVC are not subject to Royalty Withholding Tax, and that the Diverted Profits Tax did not apply.

This overturned a previous decision from 30 November 2023, which had classified parts of the payments as royalties and suggested possible application of Diverted Profits Tax.

Read our update here.

If you would like to know more about the decision and its implications for your business, please reach out to one of the authors.


tax, consumer goods, consumer goods food and retail, food and beverage