Rupert Murdoch’s News Corporation has misled the Australian Parliament and is liable to prosecution — not that government will lift a finger to enforce the law, reports Michael West Media.

SPECIAL REPORT: By Michael West

Rupert Murdoch’s News Corporation has misled the Australian Parliament. In a submission to the Senate, the company claimed, “Foxtel also pays millions of dollars in income tax, GST and payroll tax, unlike many of our large international digital competitors”.

However, an MWM investigation into the financial affairs of Foxtel has shown Foxtel was paying zero income tax when it told the Senate it was paying “millions”. The penalty for lying to the Senate is potential imprisonment, although “contempt of Parliament” laws are never enforced.

The investigation found that NXE, the entity that controls Foxtel, paid no income tax in any of the five years from 2019 to 2023. During this time it generated $14 billion of total income.

• READ MORE: Other digital tech corporation reports

The total tax payable across this period is $0. The average total income is $2.8 billion per year.

Why did News Corporation mislead the Parliament? The plausible answers are in its Foxtel Submission to the Senate Environment and Communications Legislation Committee Inquiry into The Broadcasting Legislation Amendment.

In May 2021 — which is also where the transgression occurred — the media executives for the American tycoon were lobbying a Parliamentary committee to change the laws in their favour.

By this time, Netflix had leap-frogged Foxtel Pay TV subscriptions in Australia and Foxtel was complaining it had to spend too much money on producing local Australian content under the laws of the time. Also that Netflix paid almost no tax.

Big-league tax dodger
They were correct in this. Netflix, which is a big-league tax dodger itself, was by then making bucketloads of money in Australia but with zero local content requirements.

Making television drama and so forth is expensive. It is far cheaper to pipe foreign content through your channels online. As Netflix does.

The misleading of Parliament by corporations is rife, and contempt laws need to be enforced, as demonstrated routinely by the PwC inquiry last year. Corporations and their representatives routinely lie in their pursuit of corporate objectives.

If democracy is to function better, the information provided to Parliament needs to be clarified, beyond doubt, as reliable. Former senator Rex Patrick has made the point in these pages.

Even in this short statement to the committee of inquiry (published above), there are other misleading statements. Like many companies defending their failure to pay adequate income tax, Foxtel claims that it “paid millions” in GST and payroll tax.

Companies don’t “pay” GST or payroll tax. They collect these taxes on behalf of governments.

Little regard for laws
Further to the contempt of Parliament, so little regard for the laws of Australia is shown by corporations that the local American boss of a small gas fracking company, Tamboran Resources, controlled by a US oil billionaire, didn’t even bother turning up to give evidence when asked.

This despite being rewarded with millions in public grant money.

Politicians need to muscle up, as Greens Senator Nick McKim did when grilling former Woolies boss Brad Banducci for prevaricating over providing evidence to the supermarket inquiry.

This post was originally published on Asia Pacific Report.