The High Court dismissed the Commissioner’s appeal, confirming no Royalty Withholding Tax or Diverted Profits Tax on payments by Schweppes Australia to PepsiCo Beverage Singapore.

The recent report by the Australian Government Productivity Commission proposes a reduction of corporate tax rate to 20 per cent and a 5 per cent net cashflow tax. With proper implementation, this could improve economic dynamism and resilience, otherwise, it risks adding more complexity to our corporate tax system.