Netflix Offices Raided Over Tax Allegations

Investigators have conducted raids at Netflix offices in Paris and Amsterdam due to allegations of tax fraud and illegal employment practices. The French and Dutch authorities' actions are part of ongoing investigations initiated in November 2022. The focus is on whether Netflix redirected French revenues to the Netherlands to reduce its tax burden. In the years 2019 and 2020, despite having seven million subscribers in France, Netflix paid only 980,000 euros in profit taxes.

In 2021, Netflix altered its tax strategy, and the declared revenue in France increased from 47.1 million euros to 1.2 billion euros. However, the profit margin remained low compared to its American parent company. Netflix asserts compliance with tax regulations and highlights its substantial investments in French productions, amounting to 250 million euros in 2023 alone. This includes 50 million euros earmarked for cinema projects.

Despite the legal challenges, Netflix continues to thrive globally, boasting over 282 million subscribers by September 2024. The company reported a third-quarter revenue of 9.82 billion dollars and a net profit of 2.4 billion dollars. In France, Netflix recently celebrated its 10-year anniversary, marking significant cultural contributions with successful series like "Lupin," starring Omar Sy. As the investigation unfolds, Netflix remains committed to its French market, emphasizing its role in supporting local content production.