Netflix Offices Raided in Paris and Amsterdam Amid Tax Fraud Investigation
This investigation is part of a broader scrutiny of tech companies operating across borders in Europe
French and Dutch authorities have conducted simultaneous raids on Netflix’s offices in Paris and Amsterdam as part of a tax fraud investigation that began in November 2022.
As reported, the raids were carried out on Tuesday, November 5.
This coordinated effort aims to scrutinize the company’s tax practices and financial declarations, particularly concerning its operations in France and the Netherlands.
The investigation centres around allegations of serious tax fraud, including the concealment of income and unreported labour. Authorities are particularly concerned about Netflix’s tax filings from 2019 to 2021, during which the company reportedly minimized its tax liabilities by routing revenue through a Dutch subsidiary.
Before 2021, Netflix’s French operations reportedly declared only €47.1 million in revenue for 2020, despite having a substantial subscriber base of about 10 million in France. After ceasing this practice, Netflix’s declared revenue surged to €1.2 billion in 2021, raising suspicions among tax authorities.
The raids reflect extensive collaboration between French and Dutch authorities, with the French National Financial Prosecutor’s Office (PNF) leading the investigation. This partnership underscores ongoing efforts to address tax compliance among large multinational corporations operating in Europe.
This investigation is part of a broader scrutiny of tech companies operating across borders in Europe, where tax practices have come under increasing examination. Previous issues faced by Netflix with other European authorities, such as a €55.8 million settlement with Italian tax officials in 2022 over similar concerns, highlight the challenges these companies face regarding tax compliance.
In response to the raids, Netflix has stated that it complies with all local tax laws and is cooperating fully with the authorities. The company emphasizes its role as a significant contributor to the local economy in France.
Despite the ongoing investigation, Netflix remains a dominant player in the French market, continuing to invest heavily in local content production.
