Tax fraud investigation: Netflix subject to searches in France and the Netherlands

Netflix is currently the target of simultaneous searches in France and the Netherlands, as part of a preliminary investigation into suspected aggravated tax fraud. According to information from H24 NEWS, the searches are being carried out by the French authorities in collaboration with their Dutch counterparts and Eurojust, the European Union’s judicial cooperation agency.

Suspicions of money laundering and concealed work

The investigation, opened in November 2022, targets Netflix on charges of aggravated tax fraud laundering and concealed work in an organized gang. The operations are being led by the Office central de lutte contre la corruption et les infractions financières (OCLCIFF), in close collaboration with the Parquet national financier, highlighting the extent of suspicions surrounding the platform’s tax practices.

Controversial tax practices

Netflix’s French subsidiary had already been the subject of a tax audit in August 2023, due to its invoicing methods. The company had allegedly reduced its taxation in France by declaring a large part of its hexagonal sales in the Netherlands, a country with a more advantageous tax regime. Between 2019 and 2020, Netflix would thus have paid only 981,000 euros in taxes in France, despite a subscriber base of 7 million.

Netflix’s response

Following previous accusations, Netflix had stated that it complies with the tax regulations of each country in which it operates.