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Shares of Netflix fell around 7% in extended trading Tuesday after the company posted a third-quarter earnings miss, citing an ongoing dispute with Brazilian tax authorities for the weaker-than-estimated results.

The streamer said the specific expense, stemming from a 10% tax on certain payments made by Brazilian entities to operations outside the country, was not previously in its forecast. The company decided to charge the impact to its third quarter after it became reasonably likely that Netflix would lose a legal challenge over whether it would be assessed the tax, executives said.

"It's not a tax that's specific to Netflix. It's not even specific to streaming," Chief Financial Officer Spence Neumann

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