Netflix under search for suspicion of tax fraud

In Paris and the Netherlands, Netflix is ​​facing searches amid suspicions of aggravated tax fraud.

As part of a preliminary investigation into suspected tax fraud, two searches are underway at Netflix in France and the Netherlands, BFMTV learned from a judicial source.

Netflix suspected of aggravated tax fraud

Opened in November 2022, this investigation includes charges of laundering, aggravated tax fraud and hidden work in an organized gang. The searches are carried out by investigators from the Central Office for the Fight against Corruption and Financial Crimes, in conjunction with members of the National Financial Prosecutor's Office.

These searches, one of which is taking place in Amsterdam, are being carried out in cooperation with the Dutch authorities and Eurojust, the European Union unit for better judicial cooperation between member states.

The French subsidiary of Netflix has already been targeted by a tax audit in August 2023 due to its re-invoicing techniques. It minimized its taxation in France by declaring its turnover in France in the Netherlands. It had only paid 981,000 euros in taxes between 2019 and 2020, even though it claimed 7 million subscribers.

At the time, Netflix said it “complies with the tax rules of all countries in which [ils opèrent] in the world.”