In a coordinated operation, French and Dutch authorities conducted raids at Netflix’s offices in Paris and Amsterdam on Tuesday, as part of an ongoing tax fraud investigation. The probe, which began in November 2022, is focused on allegations that Netflix engaged in tax evasion and off-the-books work, according to a judicial source.
The Paris operation involved specialist financial investigators targeting multiple locations, while a team from both countries carried out a parallel raid at Netflix’s Amsterdam headquarters for Europe, the Middle East, and Africa.
Dutch prosecutors confirmed the involvement, citing a French request for legal assistance, while Eurojust, the European Union Agency for Criminal Justice Cooperation, announced its support in the transnational investigation.
The tax filings under scrutiny span from 2019 to 2021, a period during which Netflix reportedly structured its French operations so that subscribers were linked to a Dutch subsidiary. This approach, as reported by French outlet La Lettre A, is alleged to have significantly reduced the company’s French tax bill, leaving it at less than €1 million despite having approximately seven million subscribers in France by 2020.
Netflix, which has previously asserted that it complies with tax laws in all countries where it operates, is now under investigation for potentially minimizing its reported profits in France. Authorities are examining if the company’s local subsidiary, which recorded low operating margins in 2021 and 2022, continued practices that obscured its true revenue and tax obligations.
The outcome of this investigation could have significant implications for Netflix and other multinational corporations using cross-border financial arrangements in the European Union.
