The government is taking a close look at imposing GST online digital purchases, The problem is the government simply lacks an understanding of technology the Netflix tax is simple to bypass legally.
I have Netflix and I wont be paying GST after this law is passed not because I avoid paying taxes its because I use VPN Virtual Private Network. This is a tunnel through the internet to North America. The reason I use a private network is because it protects my data from being intercepted by the GCSB mass surveillance facility in Takapuna, where optic sensors connected to the southern cross cable are intercepting our metadata.
I also use Hola a browser plugin for Google Chrome browser, this plugin sets my browser IP address in the United States, As my Netflix account is registered in the United States I wont be detected as a New Zealand customer. The Hola plugin doesn’t delay or disrupt the quality of the streaming broadcast.
If the National government was serious about tax revenue that can’t be bypassed with a simple browser plugin it would look at a Robin Hood financial transactions tax like the “Hone Heke Tax”.
Of course the government would be reluctant to establish financial transactions tax when the Prime Minister is a former derivatives trader.
The Hone Heke Tax, a tiny tax on bank transactions that could raise hundreds of billions for public services and to tackle poverty and abolish GST.
The Hone Heke Tax can’t be bypassed with a web browser plugin although the Australian owned Banks would complain a financial transactions tax would be complicated.