The Court found that a royalty was paid, notwithstanding that the contract had not expressly provided for it.Royalty withholding tax was found to be applicable.The Court found that diverted profits tax (DPT) elements were satisfied, but DPT was not applied due to Court's conclusions on royalty withholding tax.The decision is expected to be influential in actions of Commissioner of Taxation going forward.On 30 November 2023, the Australian Federal Court (Court) delivered a decision in PepsiCo, Inc. v Commissioner of Taxation [2023] FCA 1490 (Pepsi Case), finding that a royalty existed in an agreement between arm's-length parties notwithstanding that the contractual...