According to various articles in Australian media, Coca-Cola is now defending itself in a case pending before the Federal Court over unpaid withholding tax on royalties received from Coca-Cola Amatil Australia – a local bottler and distributor in which Coca-Cola has a minority shareholding. The case is very similar to that against PepsiCo, where the Federal Court, in a judgment dated 30 November 2023, found PepsiCo liable for additional taxes and penalties. According to the Australian Tax Office, Coca-Cola licensed intangibles (trademarks, branding etc.) to Coca-Cola Amatil Australia, but misclassified payments made under this agreement as being for soft drink-concentrate only in order to avoid paying withholding tax on royalties. Coca-Cola shifted around $435 million in profits overseas and is liable for $174 million in diverted profits tax ...
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