Officials conducted coordinated raids at Netflix's Paris and Amsterdam offices as part of a tax fraud investigation, with scrutiny focusing on the company's compliance with tax laws in France and the Netherlands.
Netflix Europe Under Tax Scrutiny: Raids Conducted in Paris and Amsterdam
Netflix Europe Under Tax Scrutiny: Raids Conducted in Paris and Amsterdam
French and Dutch authorities launch a joint investigation into potential tax fraud involving Netflix's financial practices.
In a significant development, the offices of streaming powerhouse Netflix in Paris and Amsterdam were raided by French and Dutch authorities on Tuesday as part of an ongoing investigation into allegations of tax fraud. According to sources from the French judicial system, investigators have been collaborating on this matter since the initiation of their inquiry in November 2022.
While Netflix has yet to publicly address the specifics of the raids, the company asserts that it adheres to tax regulations in all operating regions. The Amsterdam facility is reportedly the central hub for Netflix’s activities across Europe, the Middle East, and Africa, heightening the importance of the investigation.
The inquiry, spearheaded by France's National Financial Prosecutor's Office (PNF), focuses on accusations of "covering up serious tax fraud and off-the-books work." Additionally, Netflix's tax filings from the years 2019 to 2021 are said to be under scrutiny. As described by French sources, simultaneous searches were taking place in the Netherlands, reflecting extensive cross-border cooperation in the investigation.
Reports from last year indicated that until 2021, Netflix in France had significantly reduced its tax liabilities by declaring revenue in the Netherlands. Following the cessation of this arrangement, Netflix appeared to register a considerable increase in its declared turnover in France, from €47.1 million ($51.3 million; £39.6 million) in 2020 to an abrupt rise to €1.2 billion in 2021. Investigators are now tasked with determining if the streaming giant sought to further minimize its profits after this period.
Netflix commenced operations in France over a decade ago, having established its Paris office in 2020, where it now boasts approximately 10 million subscribers, as reported by the AFP news agency. The ongoing criminal investigation raises questions about the company's financial practices and the implications of its operational strategies within Europe.
