The giant was supposed to avoid taxation thanks to creative accounting.
Netflix has a serious problem. The branches of the American giant in France and the Netherlands were visited by the police. This is part of an investigation into alleged tax fraud.
Netflix suspected of tax fraud
This morning, employees of two European Netflix branches had an unpleasant surprise. Officers responsible for combating economic crimes raided offices in France and the Netherlands, and the reason for these actions is alleged money laundering and tax fraud.
As he says Reutersthe investigation is being conducted by PNF – a unit dealing with financial crimes, specializing mainly in matters related to international companies. French sources report that the services today searched the office in Paris and Amsterdam, although the case itself has been ongoing since 2022.
Regulatory authorities are examining, among other things, the way in which turnover is reported, which in recent years has turned out to be suspiciously low when compared to the number of paying users. It is being checked whether Netflix has falsified data, thereby avoiding taxation – however, it is worth noting that the exact details are not known because both sides refuse to comment. There are no charges yet, although the situation looks very similar to the case of the Italian branch of Netflix, which ended with a settlement of EUR 59 million. Between 2015 and 2019, Netflix lumped Italian subscribers with other users from European countries and, thanks to this creative accounting, avoided taxation.
According to news site La Lettre, last year Netflix Services France paid less than one million euros in income tax thanks to the involvement of the Dutch unit. Currently, the investigators’ work is carried out in cooperation with the local prosecutor’s office of both countries.
Stock image from Depositphotos
Source: antyweb.pl
