Government plays down tax revolution

James McGrath
By James McGrath | 19 March 2015
 

Malcolm Turnbull may be talking about charging multinational tech companies GST, but movement on the issue appears to be far away.

Yesterday it emerged that US subscription video on demand (SVOD) player Netflix would not charge GST on subscriptions, as it was not obligated to under Australian tax laws.

“Netflix has been and will be compliant with all applicable laws and regulations, and we pay taxes as required under local and national law,” a spokesperson said.

“There are no local or federal rules requiring companies not based in Australia to collect GST on digital purchases.”

It also comes as the Federal Government looks at broader tax issues as part of a white paper currently under review.

Earlier this week communications minister Malcolm Turnbull said the Government was looking into ways to charge GST on advertising income gathered by the likes of Facebook and Google as global political sentiment moves towards cracking down on tax avoidance.

However, a spokesperson at the treasury department told AdNews that there would need to broad political consensus on the issue and sign-off from all the states and territories before any moves on GST were made.

“The Government’s Tax White Paper will undertake a comprehensive review of the tax system and the GST will be considered within the context of this,” a treasury spokesperson said.

“However, the Government has made clear that the GST will not change unless the states and territories agree and unless there is a political consensus.”

The government is also working through economic body the OECD with other countries on guidelines on taxation for imported services, with a review to be wrapped up by the end of the year.

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