Large technology companies operating online often face challenges with European tax authorities. Recently, authorities in France and the Netherlands carried out search operations at Netflix offices in Paris and Amsterdam as part of an investigation into possible tax fraud, according to French legal sources.
Netflix says it complies with all tax regulations
According to Reutersthis investigation, which began in November 2022, reflects a coordinated approach between the two nations to analyze the company's tax practices. Netflix has not released any detailed statements regarding the recent searches. However, states that it complies with tax regulations in all countries where it operates.
The Amsterdam office is the hub for Netflix's operations in Europe, the Middle East and Africa. The French segment of the investigation is being led by the National Finance Prosecutor's Office (PNF), a unit specializing in high-level financial crimes.
Authorities are investigating possible "serious tax fraud and illegal employment" related to Netflix's financial practices, according to the PNF.
The investigation includes Netflix's financial records for 2019, 2020 and 2021. French sources indicated that Dutch authorities are actively conducting searches as part of this joint effort that has spanned several months.
Reports from French media outlet La Lettre suggest that Netflix may have previously minimized its tax burden in France, attributing a large portion of its revenues to its Dutch entity until 2021.
After a change in this structure, the turnover reported by Netflix in France increased from R$47.1 million in 2020 to R$1.2 billion in 2021. Investigators are now examining whether the company may have continued to employ similar tactics to reduce its tax liabilities after this change.
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Source: pplware.sapo.pt
