Netflix under tax fraud investigation as French and Dutch offices raided

Netflix is under investigation for tax fraud, with simultaneous raids conducted at its offices in France and the Netherlands. French financial crime prosecutors, the Parquet National Financier (PNF), led the inquiry, which began in November 2022, focusing on alleged financial discrepancies in Netflix’s European revenue reporting. Authorities specialized in financial crime targeted Netflix’s Paris office early Tuesday, while Dutch investigators raided its Amsterdam headquarters as part of a coordinated operation.

The inquiry follows previous scrutiny of Netflix’s tax practices across Europe. In 2022, the streaming giant settled a tax dispute with Italian authorities, paying 55.8 million euros. This latest probe may stem from concerns over the revenue reported by Netflix's French unit, which surged to 1.2 billion euros in 2021—significantly higher than prior years, raising questions regarding cross-border tax practices. While no charges have been filed, the PNF emphasized that a preliminary investigation is underway, which may or may not result in a trial.

A Netflix spokesperson stated that the company is “cooperating with authorities in France and complies with all tax regulations in every country.” Large tech corporations often encounter regulatory challenges when operating across borders, especially in Europe, where tax authorities have tightened their scrutiny of multinational firms. The investigation will likely analyze whether Netflix’s past revenue structures involved channeling French earnings through its Dutch entity, potentially reducing tax liabilities.