French and Dutch investigators searched Netflix’s headquarters in Paris and Amsterdam. messageReuters reports, citing sources in the French judicial system. The information was also confirmed by Politico EU sources.
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Law enforcement officials were looking for traces of “aggravated tax fraud” and “hidden work in an organized criminal group.” On the French side, the Anti-Corruption and Tax Crimes Agency (OCLCIFF) participated in the investigation.
The searches may be related to Netflix’s tax regime, which the service actively used in France, recording the French part of its income in the Netherlands. Until 2021, the company registered all new French users with the Dutch legal entity Netflix International BV. When the French tax authorities laid out the plan, Netflix’s revenue in the country for 2021-2022 increased from €47.1 million to €1.3 billion.
Previously, the service paid 55.8 million euros under an agreement with the Italian government, whose prosecutors accused the company of tax evasion for its refusal to open an Italian legal entity.
Source: RB
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