NAIROBI, Kenya- In an unexpected twist, French and Dutch authorities carried out coordinated raids on Netflix offices in Paris and Amsterdam as part of an ongoing investigation into suspected tax fraud, according to French judicial sources.
The investigation, spearheaded by France’s National Financial Prosecutor’s office (PNF) and assisted by Dutch officials, has been quietly active since November 2022, focusing on whether the streaming giant has attempted to minimize tax obligations in Europe.
The French National Financial Prosecutor’s office, renowned for tackling high-profile white-collar crime, is leading the investigation into Netflix’s tax practices.
The inquiry is centered on allegations of “covering up serious tax fraud and off-the-books work,” which could carry significant implications if confirmed.
Authorities from both France and the Netherlands have reportedly worked closely on the case for months, sharing insights and evidence in real time.
The Amsterdam location, which serves as Netflix’s headquarters for Europe, the Middle East, and Africa (EMEA), was specifically targeted due to its regional influence.
Although Netflix has yet to comment directly on the raids, it has reiterated its commitment to complying with tax laws wherever it operates—a stance that could face heightened scrutiny as the probe progresses.
A focal point of the investigation is Netflix’s financial reporting and tax filings for 2019, 2020, and 2021.
French media outlet La Lettre previously reported that until 2021, Netflix appeared to minimize its tax burden by channeling revenue generated in France through the Netherlands, where corporate tax obligations are generally lower.
However, when Netflix shifted this arrangement, its declared revenue in France surged from €47.1 million in 2020 to a remarkable €1.2 billion in 2021.
While this increase suggests greater transparency in financial reporting, investigators are looking into whether similar tax minimization strategies persisted post-2021.
Since establishing a physical office in Paris in 2020, Netflix has rapidly expanded its presence, amassing around 10 million subscribers in France alone, as reported by AFP.
As the streaming platform continues to solidify its foothold across Europe, ongoing scrutiny of its tax practices could present challenges to further growth in the region.
This tax probe is one of several that European authorities have launched in recent years to address complex financial arrangements among global corporations.
As European regulators increasingly clamp down on tax practices they deem questionable, Netflix may face intensified regulatory oversight—a prospect that could influence not only its European strategy but also its global operations.
