The tax office has asked the High Court to overturn a decision which found that payments made by Asahi Breweries-owned Schweppes to PepsiCo under agreements to sell brands such as Pepsi and Mountain Dew in Australia were not subject to a royalty withholding tax.
In a loss for the Australian Taxation Office, the Full Federal Court has found that payments made by Asahi Breweries-owned Schweppes to PepsiCo under agreements to sell brands such as Pepsi and Mountain Dew in Australia were not subject to a royalty withholding tax.
US drink giant PepsiCo has lodged an appeal of a court win for the Australian Taxation Office over payments made by Schweppes under a distribution agreement that were found to be subject to royalty withholding tax.
In a victory for the ATO, a judge has found that payments made by Schweppes to PepsiCo as part of a bottling and distribution agreement, which did not expressly provide for payment of a royalty for use of the company’s IP, were royalties and should be taxed accordingly.
The Full Federal Court has dismissed Linfox’s $45 million fuel tax credit appeal, finding the Australian logistics company’s argument was ‘too weak or uncertain’ to conclude that it was being over-taxed on major toll roads across the country.
Australian logistics company Linfox has taken its $45 million fuel tax credit challenge to the Full Federal Court, arguing its trucks are being over-taxed on major toll roads across the country.