From www.abc.net.au: PepsiCo faces a High Court case initiated by the ATO, which claims the company is liable for royalty withholding tax on sales of its soft drink concentrate to Schweppes Australia.

The ATO argues that an exclusive bottling agreement with Schweppes includes royalties that should be taxed, while PepsiCo contends that it did not derive any royal income from these transactions.

This case is pivotal in testing Australia’s legal framework for taxing overseas companies profiting from the Australian market.