Offices on the morning of November 5 after two years of investigation Netflix He was in Paris and Amsterdam. free. Investigations that have prompted action. Suspected tax fraud and undeclared work. An investigation confirmed by a judicial source was launched in 2022 by the French National Finance Prosecutor’s Office (Pnf) in cooperation with Dutch authorities. According to what emerged, the platform may have employed tax reform strategies. Declare low income In order to reduce taxes in France.
Investigations and allegations against Netflix
An investigation into the streaming giant followed. Tax audit Held in France during fiscal years 2019, 2020 and 2021. French authorities, supported by the Central Office for the Fight against Corruption and Financial Crime (Oclciff), cooperated with Dutch magistrates and investigators in an operation supported by Eurostat.
According to which a leading weekly reported and the newspaper confirmed. The worldauthorities suspect that Netflix has reported part of its revenue in France to the Netherlands, allowingTaxable amount French
Nel 2021, Netflix Will have to Abandoned the process, recording a net increase in announced turnover in France. From 47.1 million The Euro in 2020 Up to 1.2 billion euros. The PNF has launched further investigations to confirm whether the platform continued. Unfairly reduce profitswhile maintaining a very low operating margin in France, around 2%, compared to 20% for the US parent company.
This is not the first tax dispute. Netflix And it won’t be the last. For example, in 2022, to avoid trouble, Netflix agreed to pay 56 million euros in back taxes in Italy (for the period between October 2015 and 2019). On the occasion of the resolution, a spokesperson commented: “We have maintained constant communication and cooperation with the Italian authorities and we believe we have acted in full compliance with Italian and international law.”
Company numbers: subscribers, revenue and taxes
Globally, Netflix ranks ahead. 282 million subscribers and reported income. 9.82 billion dollarsi (approximately 9 billion euros) in the third quarter of 2024, with a net profit of $2.4 billion. A growing number considering the cost of subscriptions, which have skyrocketed worldwide.
In France, where the service has been available since 2014, the platform matters. More than 10 million households subscribed. And supported by an investment of 250 million euros in local production in 2023. There were several successes in France, including the series “Lupin”, starring Omar Sy, which reached the “top 10 most watched series in 70 villages”.
However, the figures indicate a tax contribution that may be low compared to the ratio of turnover, estimated at a profit of only 6.5 million euros in 2022. Company and French authorities.
In response to the allegations, a Netflix spokesperson said:Company complies with tax regulations. In all countries where it operates, VAT is paid at the full rate in France and the contribution is indicated. 5.15% of turnover at the National Cinema Center (Cnc).
