News Corp CEO Julian Clarke rejects tax avoidance claims and calls for an even playing field

NEWS Corp Australia CEO Julian Clarke has dismissed claims the company is avoiding tax and has called for video streaming service Netflix to be subject to GST payments.

Fronting the Senate ¬inquiry into tax avoidance in Sydney yesterday, Mr Clarke refuted Fairfax reports News Corp was channelling billions in revenue to its US ¬company, saying 98 per cent of News Corp revenue was taxed in Australia.

A submission to the inquiry revealed News Corp Australia had paid $417 million in corporate tax and withholding tax on accounting profits of $815.9 million during a five-year period. It also paid $900 million in goods and services, fringe ¬benefits and payroll taxes.

Mr Clarke also dismissed suggestions the company uses “secrecy ¬jurisdictions”.

Mr Clarke and CFO Susan Panuccio were praised by committee chairman, Labor Senator Sam Dastyari, for having “gone over and above” in answering questions, as opposed, he said, to other companies’ representatives who ¬provided little information apart from saying they had broken no laws.

Mr Clarke took aim at the newly-launched Netflix Australian service, which pays no GST, and said other streaming services were being hurt.

“Netflix pays no GST and (can) price themselves below our ¬company Presto, and the ¬Fairfax joint venture with (Channel) Nine,” he said.

He also launched a staunch defence of The Australian newspaper during an attack by Greens Senator Christine Milne, who asked what were the “tax benefits” of running the broadsheet “at a loss”.

“I don’t expect you to agree with this, but I consider the Australian as the ¬finest national newspaper,” Mr Clarke said.