Netflix offices in France and the Netherlands have been raided as part of a preliminary inquiry into tax evasion, according to a French court source.
Investigators specialising in financial crime and corruption raided the offices of the US streaming behemoth in central Paris on Tuesday.
According to a French source, Dutch officials were simultaneously searching the company’s European headquarters in Amsterdam.
The French investigation was opened in November 2022 and was carried out by the Parquet National Financier (PNF).
The PNF is a special financial crime prosecution unit known for pursuing high-stakes white-collar probes that often involve large international companies.
The French investigation began in November 2022 and was conducted by the Parquet National Financier (PNF).
The PNF is a specialised financial crime prosecution team noted for pursuing high-stakes white-collar investigations that frequently include huge worldwide corporations.
Also read: https://www.tvcnews.tv/2024/05/italian-police-uncover-billion-euro-tax-credit-scam/
Large tech companies often run into difficulties with European tax authorities when offering online services and subscriptions across borders.
According to corporate papers examined by Reuters, Netflix’s French unit’s revenue increased to almost 1.2 billion euros ($2 billion) in 2021 from 47 million euros ($77 million) the previous year.
La Lettre A, a French outlet, reported that Netflix’s French operation was structured until 2021 in a way that all subscribers signed up with a Dutch subsidiary. This left the company to pay less than one million euros ($1.1 million at today’s rates) in taxes to Paris across 2019 and 2020.
In 2022, Netflix agreed to settle a tax issue with Italy by paying 55.8 million euros ($91.9 million).
Netflix stated on its website that it launched its Paris office, located just around the corner from the Opera Garnier, in 2020 and employs approximately 40 people.
The majority of the company’s original films and series, including the global hit Emily in Paris, are produced in collaboration with third-party contractors.
