date:Sep 27, 2012
s debt inHolland (under Dutch tax law) but equity for US Federal income tax purposes; the case turned on their classification in this respect.
PepsiCo successfully argued that it held an equity stake in its Dutch subsidiaries PGI and PWI, and payments made by them to its US base were thus non-taxable returns on capital expenditure in the said markets.
Speculative foreign investments
Goeke agreed, stating that the money had been lent for speculative investments in undeveloped foreign markets,