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. The searches were conducted simultaneously at Netflix’s headquarters in Paris and Amsterdam by Dutch magistrates and investigators, accompanied by French magistrates and investigators. The French investigation, carried out by the PNF, a special financial crime prosecution unit known for pursuing high-stakes white-collar probes involving large international companies, was opened in November 2022.
The facts that led to the investigation were not immediately clear. A Netflix spokesperson said, “We are cooperating with the authorities in France, where our company is a significant contributor to the local economy — and we comply with the tax laws and regulations in all the countries in which we operate.”
Cooperation between the French and Dutch authorities has been underway for many months, according to a French judicial source. A preliminary investigation in France does not imply criminal charges and does not necessarily lead to a trial.
Large tech companies offering their online services and subscriptions across borders often run into difficulties with European tax authorities.
Netflix offices raided for tax inquiry
In 2022, Netflix agreed to settle a tax dispute with Italy by paying 55.8 million euros ($60.78 million).
Netflix opened its Paris bureau, just around the corner from the Opera Garnier, in 2020, when it employed around 40 staff members. The company produces most of its original films and series, including the global blockbuster “Emily in Paris,” by working with third-party contractors. Dutch prosecutors also raided Netflix’s European headquarters in Amsterdam.
Emma Bosma, a spokesperson for the National Office for Serious Fraud, Environmental Crime, and Asset Confiscation, said the raid was carried out at the request of French authorities. The scrutiny comes as Netflix’s French unit reported a significant surge in revenue, reaching 1.2 billion euros in 2021. Authorities are keen on understanding the tax practices associated with this revenue growth.
