9News: Netflix not paying tax

Ross Greenwood: The key clause is 8.1 – the “The terms of use shall be governed by and constructed in accordance with the laws of the Netherlands.”

The Netherlands? That’s right – cogs, windmills, tax havens!

Netflix here has 5.3 million subscribers – you pay between $9.99 and $19.99 per month. So that’s between $600 million and $1 billion a year!

But last year, Netflix here paid just $341,000 tax. And that’s because your money goes to Holland. So-called mail-box companies there pay just 7.6 percent tax, compared with 30 percent here.

Now the Google Tax was supposed to stop all this – its for  companies with global revenues of $1 billion plus, Australian revenues above $25 million

Netflix just sends $12.1 million back to Australia for admin so it gets in under that $25 million cap.


The other issue of course is fairness, why should a big player   dance around our tax laws but you cant.

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