Australia: Taxpayer not liable for withholding tax on embedded royalties or subject to DPT (Full Federal Court decision)
Full Federal Court found in favor of the taxpayer
Full Federal Court found in favor of the taxpayer
The Full Federal Court yesterday found in favor of the taxpayer in its appeal from the court’s earlier judgment in PepsiCo, Inc v. Commissioner, in which it held that the taxpayer was liable for withholding tax on embedded royalties and opined that if the taxpayer were not liable for royalty withholding tax, the diverted profits tax (DPT) would apply. Read TaxNewsFlash
Read the court’s judgment
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.