Netflix subscription is revealed at $8.99, page-20

They are based in the US. That's where they pay their taxes.

How is it a ruse? They are a non-local entity. This is basically the same argument Gerry Harvey tried to make about Amazon not paying GST. Sure it might frustrate local players, but there's nothing illegal about it. Google, Facebook, Apple all do the exact same thing.

If you really want to understand this I suggest reading the following: http://www.taxboard.gov.au/content/...ross_border_transactions_discussion_paper.pdf

It's a silly point to argue over as it's fairly obvious Netflix's lawyers have done their research before structuring the business in this way.

May SL should write another letter thanking Netflix for coming in the front door but politely requesting they make an ongoing donation of additional tax...