PepsiCo Must Pay Diverted Profits Tax, Australian Court Rules

PepsiCo must pay an undisclosed amount of diverted profits tax for payments for intellectual property, the Australian Federal Court ruled Thursday in a landmark ruling on DPT.

Federal Court Justice Mark Moshinsky handed down his judgment Thursday in favor of the Australian Taxation Office but ordered it remain confidential to allow the parties two days to make submissions on confidentiality issues relating to the judgment.

“This decision confirms PepsiCo, Inc. (Pepsi) is liable for royalty withholding tax and, in the alternative, diverted profits tax would apply,” the Australian Taxation Office said in a statement Friday.

The tax office sent ...