In a significant development, investigators conducted raids on Netflix offices in France and the Netherlands on Tuesday as part of an ongoing investigation into potential tax fraud and money laundering, according to a French judicial source.
The investigation, initiated by France’s Parquet National Financier (PNF) in November 2022, involved coordinated searches of Netflix’s Paris office and its European headquarters in Amsterdam. The PNF, renowned for handling high-profile financial crime cases, is collaborating closely with Dutch authorities on this probe.
Sources indicate that the French and Dutch authorities have been working together for several months, examining Netflix’s financial activities in both countries. The focus is on whether the streaming giant has appropriately reported its revenues and adhered to tax obligations.
A Netflix spokesperson confirmed the company’s cooperation with French authorities. “We are committed to complying with tax laws in every country we operate in and are a significant contributor to the local economy in France,” the spokesperson said.
Corporate records reveal that Netflix’s revenue in France surged to approximately €1.2 billion in 2021, a substantial increase from €47 million the previous year. Despite requests, Netflix did not comment on allegations regarding prior revenue reporting through its Amsterdam headquarters instead of France.
The PNF has not provided further details on the scope or findings of the investigation. It is important to note that a preliminary inquiry in France does not necessarily imply criminal charges and may not lead to a trial.
This investigation underscores the growing scrutiny international corporations face concerning tax practices in Europe. Stakeholders, including investors and market analysts, are closely monitoring developments as authorities endeavor to ensure compliance with financial regulations.
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Netflix offices in France and Netherlands raided in tax fraud probe
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