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Netflix offices in Paris and Amsterdam raided as part of tax fraud probe, reports say

Posted on by Nargang
Netflix offices in Paris and Amsterdam raided as part of tax fraud probe, reports say

The top line

Financial crime and corruption investigators raided the Paris office of streaming giant Netflix on Tuesday morning. multiple plugs reported, as a simultaneous search took place at the company’s EMEA headquarters in Amsterdam.

Key facts

French newspaper Marianna first reported the National Financial Prosecutor in Paris and police officers from the anti-corruption office raided Netflix in connection with a tax fraud investigation.

An unnamed French judicial source he told Reuters Dutch authorities are simultaneously raiding the company’s headquarters in Amsterdam.

French press agency AFPalso citing an unnamed judicial source, reported that Tuesday’s search is related to an investigation opened in November 2022 into suspicions of “concealment of serious tax fraud and irregular work”.

The company is also under investigation in France for its 2019, 2020 and 2021 tax returns, it was reported last year, and Netflix responded with promises to comply with tax laws in each of the more than 190 countries in which it operates.

Netflix representatives did not immediately respond to Forbes’ request for comment on Tuesday.

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Big number

9.82 billion. So much Netflix reported global revenue in the third quarter of 2024, up more than 15% from $8.5 billion a year earlier.

Key background

Netflix, the world’s largest streaming service, with 282 million Subscribe since September, he faced a financial calculation over the past decade as international governments push for individual streamer taxation. Switzerland voted in 2022 to introduce its own system of streamer fees and quotas; Canada passed legislation to force foreign platforms to directly subsidize local content; and in 2022 Netflix began paying local taxes in Australia on earnings from users in that country. The company has also been the subject of tax disputes in several countries. In 2022, the company he agreed to pay about $60 million (€55.8 million) to settle a tax evasion investigation in Italy. The country argued that Netflix should have paid taxes in Italy because it relied on the nation’s digital infrastructure to deliver content to users in the country, despite having no offices or employees there. Netflix said it thought it did respected with Italian and international rules, but agreed to pay the settlement amount and opened an office in Rome with dozens of employees. Japanese authorities in 2022, said Netflix failed to report $10 million (¥1.2 billion) in total revenue in the three years ended December 2019 (the company is thought to be settled since the tax invoice with Japan).

Further reading

BarronsDutch and French authorities raid Netflix offices in tax probe: judicial sourceReutersTax fraud investigators are searching Netflix’s offices in Paris and Amsterdam, the source says
The Hollywood ReporterNetflix tax: Lawmakers increasingly look to streaming giants to fund local prioritiesForbesNetflix earnings: Stocks rise as streaming giant beats expectations, but subscriber growth slowsOf Lindsey Choo