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at 2:00 pm on May 3, 2021 | 10 comments
Streaming video giant Netflix paid just $553,705 in tax in Australia in 2020, although the amount paid was up on the previous two years ($485,371 in 2019 and $341,793 paid in 2018).
The small amount of tax paid comes despite estimates that Netflix generated in excess of $1 billion in revenue from its Australian subscribers at the height of the pandemic lockdowns.
Netflix avoids paying tax in Australia by using a company structure that sees a Netherlands-based unit recognising Australian revenue, with its Australian subscribers being billed by that entity and its Australian unit paying the Netherlands unit a fee for its collection services.