Netflix offices were raided in a joint operation by French and Dutch authorities

File PHOTO: The Netflix logo is depicted on one of the Hollywood buildings in Los Angeles, California, USA, July 12, 2023. REUTERS/Mike Blake/File photo

French and Dutch authorities Netflix offices in Paris and Amsterdam were raided on Tuesday, November 5, as part of an investigation into alleged tax fraud and employment concealment, according to French judicial sources.
The searches, carried out by France’s National Financial Prosecutor’s Office (PNF) and corruption investigators, were the result of a preliminary investigation launched in November 2022 into the suspects”aggravated tax fraud launderingand “hidden work in an organized gang.”
The raids follow a review of Netflix’s tax returns between 2019 and 2020, when the company’s reported revenues in France were found inconsistent with its subscriber base of approximately 7 million users. According to French publication La Lettre, Netflix Services France paid just 981,000 euros ($1.06 million) in corporate taxes for 2019-2020.
Netflix’s reported turnover in France has increased sharply since 2020, rising from €47.1 million ($51.3 million) to €1.2 billion ($1.3 billion) in 2022, suggesting the company may , previously used tax optimization strategies through its subsidiary in Holland (Netherlands).
The simultaneous searches at Netflix’s European headquarters in Amsterdam were carried out as part of a collaboration between French and Dutch authorities that has been ongoing for months, officials said.
This isn’t Netflix’s first tax-related problem in Europe. In 2022, the streaming giant paid 55.8 million euros ($59.1 million) to settle a tax dispute with Italian authorities.
Netflix, which opened a Paris office in 2020 and has about 40 employees there, did not respond to requests for comment on the raids. The company produces several original series in France, including the hit show Emily in Paris.
A preliminary investigation in France does not necessarily lead to criminal charges or trial.