In brief
French authorities have raided Netflix’s offices in Paris as part of a tax fraud investigation that also involved the Amsterdam headquarters.
Streaming giant Netflix is facing scrutiny as French and Dutch authorities executed raids on its Paris and Amsterdam offices on Tuesday morning. This action forms part of an ongoing investigation into alleged tax fraud, which has been under examination since November 2022.The Paris office, where around 10 million subscribers are based, has attracted attention from the National Financial Prosecutor's Office (PNF), a body dedicated to tackling white-collar crime in France. The probe focuses on suspicions surrounding severe tax evasion tactics and illicit work practices. France’s tax scrutiny also extends to Netflix's filings for the years 2019 through 2021.In a joint effort, authorities from both countries have been collaborating closely on this matter for months. While Netflix has yet to provide a specific response regarding the investigations, the company has maintained that it adheres to tax laws in every region where it operates.Reports indicate that French media had previously alluded to Netflix's strategies for minimizing tax liabilities by routing revenue generated in France through the Netherlands. Following a cessation of this practice, Netflix’s reported revenue in France surged from €47.1 million ($51.3 million) in 2020 to €1.2 billion in 2021. Investigators are now probing whether Netflix continued to engage in similar tactics after 2021, potentially complicating its relationship with tax authorities in Europe.Netflix, which has had a foothold in France for over a decade, established its Paris office in 2020, expanding its market presence in the European, Middle Eastern, and African regions.
