Authorities conduct raids on Netflix European offices in tax fraud investigation

French and Dutch authorities have conducted raids on the offices of the streaming service Netflix in Paris and Amsterdam. These actions are part of an ongoing investigation into alleged tax fraud, according to French judicial sources. Cooperation between officials from both nations on this matter commenced when the investigation was initiated in November 2022. Netflix has refrained from issuing any specific statements regarding the raids thus far, though the company maintains its adherence to tax regulations in all its operational territories. The company’s operations across Europe, the Middle East, and Africa are headquartered at its Amsterdam office. The National Financial Prosecutor’s office (PNF), a specialized unit dedicated to probing significant white-collar offenses, is conducting the French component of the investigation. The PNF indicates that the inquiry pertains to suspicions of “covering up serious tax fraud and off-the-books work”. Furthermore, the company’s tax filings for the years 2019, 2020, and 2021 are also subject to investigation. French sources reported that Dutch authorities were carrying out concurrent searches, and that collaborative efforts between the two nations had been underway for “many months”. In the previous year, the French media outlet La Lettre published a report stating that up until 2021, Netflix in France had reduced its tax obligations by attributing its French-generated turnover to the Netherlands. Following the discontinuation of this arrangement, La Lettre indicated that Netflix’s declared annual turnover in France dramatically increased from €47.1m ($51.3m; £39.6m) in 2020 to €1.2bn in 2021. Nevertheless, the outlet notes that investigators are working to ascertain if Netflix persisted in efforts to minimize its profits beyond 2021. Netflix established its presence in France over a decade ago, opening its Paris office in 2020. The company serves approximately 10 million subscribers within the nation, as reported by AFP news agency.