Insights

Commissioner’s embedded royalty hunt diverted

The Full Federal Court has handed down its much-anticipated decision in PepsiCo, Inc v Commissioner of Taxation [2024] FCAFC 86, overturning the decision of the Federal Court.

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two corporate buildings
ATO boldly sharpens its tools: multinational intangible arrangements in its sights

Multinational groups who use intangible assets as part of their operations should be aware of two new guidance documents published by the ATO.

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rolled newspaper pages
Royalty-free contracts will attract scrutiny by the ATO

The Federal Court has held in Pepsi Inc v Commissioner of Taxation [2023] FCA 1490 that international arrangements involving the licence of trademarks and other intellectual property (IP) should be...

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Corporate buildings and ground shot of plane
New anti-avoidance rule denying deductions for payments relating to intangible assets

On 23 June 2023, Treasury released further draft legislation to deny deductions for payments by Significant Global Entities (SGEs) relating to intangible assets connected with low corporate tax...

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Green maze
Do your international arrangements with intangible assets pass the test?

The current scrutiny of the Australian tax outcomes relating to the intangible assets of international groups continues. On 17 May 2023, the Australian Taxation Office (ATO) issued Practical...

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