PepsiCo Court Win Will Blunt, Not Stop, Australia Tax Crackdown

PepsiCo Inc.’s victory on royalty taxes in an Australian appeals court stands to pose an obstacle for the nation’s tax authorities as they continue their crackdown on multinational companies.

The ruling is “a big win for the taxpayer,” said Rick Minor, senior vice president and international tax counsel for the US Council for International Business.

Still, the Australian Taxation Office is expected to keep the pressure on multinationals they view as trying to avoid taxes. The ATO has taken a tough enforcement stance against multinationals in recent years, especially over offshore transactions along the lines of PepsiCo’s, and companies ...