Release: Netflix outsmarts the ATO

Release: Netflix outsmarts the ATO

The Australian Taxpayers’ Alliance, the nation’s largest grassroots advocacy group representing Australia’s taxpayers, today condemns the Australian Government’s corporate tax rate for discriminating against smaller local businesses while pushing large companies, like Netflix, to move overseas.

“Smart politicians in the Netherlands have decided to keep the corporate tax rate at 25 percent and not inordinately tax dividends or royalties thus attracting companies like Netflix,” says ATA Communications Manager, Emilie Dye. “The ATO consequently misses out on taxing the $600 million to $1 billion Netflix earns annually in Australian.”

“Because of the poor corporate tax structure, the ATO looses millions in revenue each year. Globalisation means countries have to compete for big companies.

“Small businesses not corporations pay the corporate tax rate. Large international digital companies like Google, Facebook, and Netflix all legally direct their Australian revenue overseas to tax havens. If pollies want to make corporations pay their fair share, they must lower the corporate tax rate.

“We want Australia’s tax system to be fair for all taxpayers. Tax avoidance by some entities causes instability and compels taxpayers to question the integrity of our system, particularly at a time when the government continues to breathe down the throats of small businesses and individuals.”