High Court decides in favour of PepsiCo - 14 August 2025

On 13 August 2025, the High Court decided in favour of PepsiCo, Inc and Stokely-Van Camp, Inc in Commissioner of Taxation v PepsiCo, Inc [2025] HCA 30. This decision brings to an end the much-followed dispute involving PepsiCo in respect of the 2018 and 2019 years.

This matter has been notable as it challenged some of the orthodoxy relating to the identification and characterisation of a “royalty” and also provided the first judicial analysis of the diverted profits tax (DPT).