Netflix Europe’s Paris and Amsterdam offices were buzzing with more than just streaming on Tuesday as investigators swept through in a dramatic raid.
Story Summary:
- French and Dutch authorities raided Netflix’s offices in Paris and Amsterdam over alleged tax fraud related to revenue reporting.
- Investigators suspect Netflix routed French revenue through its Dutch subsidiary to minimise tax obligations in France between 2019 and 2021.
- Netflix has committed to cooperating with authorities and has recently pledged substantial investments in French content to comply with regulatory demands.
Here’s why the Netflix Europe offices were raided
French and Dutch authorities, backed by Eurojust, stormed the offices in a coordinated move, sniffing out possible tax fraud and some shady financial practices that Netflix may have been hiding.
The Hollywood Reporter first broke the news, with a French prosecutor confirming, “I can confirm that searches are being carried out today at various locations, including Netflix’s French headquarters.”
For a company that usually stays in the headlines for hit series and trending movies, this surprise raid is a plot twist of epic proportions.
Netflix, the household name in streaming, is facing accusations that it may have side-stepped some serious tax bills in France by channelling French revenue through its Dutch branch, Netflix International BV.
Investigators suspect that by keeping its “French” revenue in Amsterdam, Netflix potentially cut down its French tax obligations big time in 2019 and 2020.
And while the streamer may have started recording its French earnings in France by 2021, it appears regulators were already on the hunt.
An earlier report by French outlet La Lettre hinted that Netflix’s 2019–2020 filings raised eyebrows, sparking today’s deep dive into the company’s books.
Amid this public drama, Netflix postured with a carefully crafted statement:
“We are cooperating with the authorities in France, where Netflix is a significant contributor to the local economy, and we comply with tax laws and regulations in all the countries in which we operate.”
It’s a classic PR move, but insiders say this investigation could spell trouble if French and Dutch authorities find solid evidence that Netflix skirted tax obligations.
