PepsiCo: a guide to the ongoing implications
Published Date: 10 Nov 2025
The High Court’s 4:3 majority judgment in FCT v PepsiCo, Inc brings to an end one of the more significant Australian income tax disputes in recent times, and addresses a number of important and fundamental concepts for multinationals. In finding in favour of the taxpayer in the long-running, embedded royalty dispute against the Commissioner of Taxation, and in considering what constitutes an embedded royalty for tax purposes, the High Court clarified the concept of consideration for the use of intangible assets. It also provided definitive guidance on the interpretation and application of Australia’s diverted profits tax and general anti-avoidance provisions.
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- Published By: Angelina Lagana CTA, Craig Boyle CTA, Cameron Blackwood ATI
- Published On:10 Nov 2025
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