Investigators searched the places of work of US streaming large Netflix in France and the Netherlands on Tuesday as a part of a preliminary investigation into tax fraud laundering, a French judicial supply mentioned.
The French investigation, carried out by the Parquet Nationwide Financier (PNF) – a particular monetary crime prosecution unit identified for pursuing high-stakes white-collar probes that usually contain giant worldwide corporations – was opened in November 2022.
“We’re cooperating with the authorities in France, the place Netflix is a big contributor to the native economic system, and we adjust to the tax legal guidelines and rules in all of the international locations during which we function,” a Netflix spokesperson informed Reuters.
Investigators specialising in monetary crime and corruption raided the corporate’s places of work in central Paris on Tuesday morning.
Dutch authorities had been concurrently looking out the corporate’s European headquarters in Amsterdam, the French judicial supply mentioned.
“Cooperation between the French and Dutch authorities has been beneath method for a lot of months as a part of these proceedings,” the French supply mentioned. The workplace of the Dutch prosecutor for monetary crime declined to remark and referred inquiries to the PNF.
A preliminary investigation in France doesn’t suggest legal costs and doesn’t essentially result in a trial.
It was not instantly clear what prompted the investigation.
Giant tech corporations providing their on-line companies and subscriptions throughout borders usually run into difficulties with European tax authorities.
Information web site La Lettre reported final yr that Netflix’s French subsidiary turned the topic of scrutiny from tax authorities over its low reported turnover, which the outlet mentioned was at odds with paying person numbers within the nation.
Between 2019 and 2020, Netflix Providers France paid lower than €1 million in company taxes, by involving a separate unit registered within the Netherlands, La Lettre mentioned, including the corporate stopped the observe in 2021.
Company data reviewed by Reuters confirmed the income of Netflix’s French unit surged to round €1.2 billion in 2021, from €47 million the yr earlier than.
Netflix in France didn’t reply to a request for touch upon the alleged reporting of revenues via Amsterdam fairly than France in 2019 and 2020.
The PNF declined to provide particulars on the scope of its investigation.
In 2022, Netflix agreed to settle a tax dispute with Italy by paying €55.8 million.
Netflix mentioned on its web site it opened its Paris workplace, positioned simply across the nook from the Opera Garnier, in 2020 and employed round 40 employees.
The corporate produces most of its authentic movies and collection, together with the worldwide blockbuster Emily in Paris by working with third-party contractors.
