Authorities in France and the Netherlands conducted simultaneous raids on Netflix’s offices as part of a tax fraud investigation. The streaming giant claims it complies with all applicable tax laws and regulations. The investigation follows a 2022 tax settlement in Italy.
In recent years, Netflix’s French unit saw a sharp revenue increase, surging to 1.2 billion euros in 2021. Investigators searched the offices of Netflix in France and the Netherlands on Tuesday as part of a preliminary investigation into tax fraud and money laundering, a French judicial source close to the investigation confirmed. Searches were conducted simultaneously at Netflix’s headquarters in Paris and Amsterdam by Dutch magistrates and investigators, accompanied by their French counterparts.
The French investigation, carried out by the PNF (a special financial crime prosecution unit known for high-stakes white-collar probes involving large international companies), was opened in November 2022. Dutch authorities were simultaneously searching Netflix’s European headquarters in Amsterdam. Neither Netflix’s Financial Intelligence Unit in France nor its representatives in the Netherlands responded immediately to requests for comment.
The French judicial source noted that cooperation between French and Dutch authorities has been ongoing for many months. A preliminary investigation in France does not imply criminal charges and does not necessarily lead to a trial. The specific facts leading to the investigation were not immediately clear.
Tax fraud investigation of Netflix offices
Large tech companies offering online services and subscriptions across borders often face challenges with European tax authorities. In 2022, Netflix settled a tax dispute with Italy by agreeing to pay 55.8 million euros ($60.78 million).
Netflix opened its Paris bureau, located around the corner from the Opera Garnier, in 2020, employing around 40 staff members. Netflix produces most of its original films and series, including the global hit “Emily in Paris,” by working with third-party contractors. French and Dutch authorities have been collaborating for many months on an investigation centered around suspected laundering of tax fraud and off-the-books work.
A judicial official in France, who spoke on condition of anonymity due to French secrecy laws applicable to judicial probes, provided this information. French police investigators have conducted searches at Netflix’s French headquarters. The search was supported by officials from a specialized police brigade that deals with major tax fraud, money laundering, corruption, and other white-collar financial crimes, along with representatives from the French national prosecutors’ office dedicated to financial crimes.
“We are cooperating with the authorities in France, where we are a significant contributor to the local economy, and we comply with the tax laws and regulations in all the countries in which we operate,” a Netflix spokesperson said in a statement. The probe reportedly began in November 2022. Additionally, Dutch prosecutors raided Netflix’s European headquarters in Amsterdam at the behest of French authorities.
Emma Bosma, a spokesperson for the National Office for Serious Fraud, Environmental Crime and Asset Confiscation, confirmed the raid.
