A U.S. company (“PepsiCo”) entered into an “exclusive bottling appointment” (“EBA”) with an arm’s-length Australian bottling company (“SAPL”). PepsiCo agreed in the EBA to sell, or cause a related entity to sell, beverage concentrate to SAPL for bottling and sale, and granted SAPL the right to use the Pepsi and Mountain Dew trademarks in this regard. A Singapore company in the PepsiCo group produced the concentrate, and sold it (at a 0.05% mark-up) to an Australian company i...| taxinterpretations.com
Principal Issues: 1. Does the fact that a joint line of credit is secured by a property which the taxpayer contributed most of the capital for, in and of itself, result in attribution to the taxpayer pursuant to 74.1(1)? 2. Does the spouse's use of the funds drawn from the joint line of credit constitute an indirect transfer under subsections 56(4.1) or 56(2)? 3. Does the fact| taxinterpretations.com