(DCWatchdog.com) – In a major blow against corporate giants avoiding tax obligations, the Paris and Amsterdam Netflix offices were raided by French and Dutch authorities.
While Netflix claims innocence, authorities suspect widespread tax fraud.
The raid has raised questions of how deeply this issue runs through the tech world, and if this could set a precedent for international scrutiny on big tech.
Netflix’s offices in Paris and Amsterdam were targeted in an international tax fraud investigation, shaking the corporate world.
The probe stems from suspicions of “covering up serious tax fraud and off-the-books work” covering 2019 to 2021 financial activities.
Although ongoing, this investigation began in November 2022 and has progressed methodically.
A judicial source noted, “French and Dutch authorities raided streaming giant Netflix’s offices in Paris and Amsterdam on November 5, 2024, as part of a tax fraud probe,” Variety reports.
French prosecutors are leading the charge, focusing on the tech giant’s alleged tax evasion tactics.
They suspect Netflix of downplaying its French turnover by declaring revenue in the Netherlands until 2021.
After amending this practice, Netflix’s reported turnover in France skyrocketed from €47.1m in 2020 to €1.2bn in 2021, a glaring red flag.
Netflix previously settled a tax disagreement with Italy, where it paid a hefty €55.8 million in 2022.
This high-profile case follows France and other nations increasing efforts to clamp down on corporate financial loopholes.
Global tech companies like Netflix, often navigate complex tax landscapes across multiple nations.
While a preliminary investigation doesn’t result in criminal charges, accountability for their pricing strategies is overdue.
Corporations must now follow nations like Switzerland, Canada, and Australia, which have long enforced local tax compliances.
“Cooperation between the French and Dutch authorities has been underway for many months as part of these proceedings,” a French source highlighted, cited by Reuters.
This case indicates a growing global resolve to enforce fair taxation on tech conglomerates.
Netflix’s reported $9.8 billion in revenue worldwide from July to September 2024 shows its substantial market sway.
#FRANCE: DUTCH, FRENCH AUTHORITIES RAID NETFLIX OFFICES IN TAX PROBE
Dutch and French authorities recently raided Netflix's offices in Paris and Amsterdam as part of a preliminary investigation into suspected tax fraud and money laundering on Tuesday morning, 5 November 2024.
The… pic.twitter.com/tgHyx77nlj— MwanzoTV (@MwanzoTv) November 5, 2024
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