In a major tax fraud investigation, authorities from France and the Netherlands searched Netflix’s offices in Paris and Amsterdam on Tuesday, as a judicial source confirmed. The investigation, which started in November 2022, is looking into claims of serious tax fraud and undeclared work at Netflix, the global streaming company.
Financial investigators from both nations led the searches, centering on Netflix’s European headquarters in Amsterdam. France is also reviewing Netflix’s tax reports from 2019 to 2021.
Netflix has stated that it follows tax laws in all countries where it operates. However, French news site La Lettre A reported that until 2021, Netflix had French customers sign contracts through a Dutch branch, reducing its taxes in France. This reportedly led Netflix to pay less than €1 million in taxes to the French government for 2019 and 2020.
The investigation aims to uncover if Netflix has continued practices that may have unlawfully lowered its reported income in France, affecting its tax payments. Netflix recently announced over $9.8 billion in global revenue and a net profit of $2.4 billion from its 282 million subscribers in the third quarter of this year.