Pepsico Appeals Australia Ruling for Tough Tax on Multinationals

Pepsico has appealed an Australian court ruling against it that blessed the use of the country’s “diverted profits tax,” a tough weapon that Australian authorities can use to pursue multinational companies.

Notice of the appeal to the full Federal Court of Australia was filed Friday, according to a court docket listing. A Federal Court judge had issued the ruling in November.

The ruling concerns a dispute over whether an Australian Pepsi bottler’s purchases of beverage concentrate from a Singapore Pepsi affiliate also effectively included taxable royalties for the use of Pepsi trademarks and other intellectual property. The judge agreed ...