The Amsterdam office, which serves as Netflix’s regional headquarters for Europe, the Middle East, and Africa, was also raided in connection with the probe. Investigators are looking into Netflix’s tax practices during these years, particularly its reported turnover in France. French media reports suggest that Netflix may have previously used its Netherlands office to declare its French earnings, which resulted in minimizing its tax liabilities. In 2020, the company reported a turnover of €47.1 million in France, but this figure jumped significantly to €1.2 billion in 2021 after the company allegedly abandoned this tax strategy.
Despite these allegations, Netflix has refrained from making any specific comments regarding the raids. The company has, however, stated that it adheres to the tax laws of every country in which it operates. French and Dutch authorities have been cooperating on the case for several months, and the ongoing investigation aims to uncover whether Netflix continued to engage in tax minimization tactics after 2021, when its reported turnover in France grew substantially.
Netflix first expanded into the French market over a decade ago and opened its Paris office in 2020. The company currently has approximately 10 million subscribers in France. While Netflix has previously faced criticism over its tax arrangements in various countries, the ongoing investigation in France and the Netherlands could have significant implications for the streaming giant, potentially leading to hefty fines or legal challenges if any wrongdoing is discovered.
The investigation into Netflix’s tax practices is part of a broader effort by European authorities to clamp down on large corporations accused of exploiting tax loopholes. The company’s complex international structure, which has allowed it to declare profits in countries with lower tax rates, has drawn scrutiny in multiple jurisdictions. French authorities are particularly focused on the period before 2021 when Netflix allegedly minimized its French tax obligations by routing earnings through the Netherlands, raising questions about the company’s financial transparency.
This case also comes amid growing calls for multinational corporations, especially tech giants, to pay a fair share of taxes in the countries where they generate substantial revenues. Governments across Europe have been tightening regulations to prevent such tax avoidance strategies, with Netflix potentially facing significant fines or adjustments to its past tax filings depending on the investigation’s outcome.
