Searches are currently underway at Netflix’s French premises. The number 1 in streaming faces serious accusations of “ laundering of aggravated tax fraud » and “ hidden work in an organized gang “.
An investigation launched in 2022
According to information collected by Mariannethe National Financial Prosecutor’s Office and the Central Office for the Fight against Corruption and Financial and Tax Offenses are jointly carrying out the operation in the company’s premises, located in the 9th arrondissement of Paris. It is being carried out as part of a preliminary investigation launched in 2022, on suspicion of tax fraud and concealed work.
It was a simple organized tax audit which brought to light surprising anomalies. While Netflix recorded 7 million subscribers in France around 2019 and 2020, the company only paid a paltry sum of 981,000 euros in taxes on its profits. The authorities thus noted a glaring difference between the profitability of the platform in France and the United States, with the French subsidiary posting a margin of only 2%, compared to 20% at its American parent company, detailed The Letter in a survey published in 2023.
But that’s not all. From a turnover of 47.1 million euros in 2020, Netflix increased to more than 1.2 billion euros in revenue the following year, then 1.3 billion in 2022. Justice suspects a well-established tax trick to explain the phenomenon: the company would have artificially transferred a large part of its French income to other countries, notably the Netherlands, known for their advantageous taxation.
Searches also underway in the Netherlands
“ Search operations are carried out simultaneously at the headquarters of the Netflix companies in Amsterdam by Dutch magistrates and investigators, accompanied by French magistrates and investigators », announced a judicial source to Release.
“ A criminal cooperation action between the French and Dutch authorities has been carried out for many months as part of this procedure and has been coordinated by Eurojust », She specifies, referring to the Judicial Cooperation Unit of the European Union.
Thus, investigators are seeking to determine how Netflix would have developed this financial arrangement. In 2020, we already learned that its French subscribers subscribed with Netflix International B, its Dutch subsidiary. They have been signing with Netflix Services France SA since January 2021.
- Searches are underway at Netflix’s French premises.
- The streaming platform is suspected of “ laundering of aggravated tax fraud » and “ hidden work in an organized gang “.
- For years, she allegedly declared her French income in the Netherlands.
