Investigators of France and the Netherlands conducted searches at Netflix offices as part of the investigation of possible tax fraud. The French National Financial Prosecutor's Office, which began an investigation in 2022, suspected that the company could artificially reduce its tax liabilities by declaring the income received in the French market in the Netherlands, where less strict tax rules apply.
According to the investigation, in 2019-2020 Netflix paid only € 981,000, despite the presence of 7 million subscribers in France. It is also surprising that the official turnover of the company in France increased from 47.1 million euros in 2020 to significant 1.2 billion euros after tax checks, which indicates the hidden part of the income.
In addition to tax fraud, Netflix is suspected of laundering funds, violation of tax legislation in burdensome circumstances and possible work in the organized group. The investigation is ongoing, and the final conclusions will depend on the analysis of documents and information removed during the searches.
