French and Dutch authorities conducted raids on Netflix offices in both France and the Netherlands to investigate financial fraud.
The operation is part of a cross-border probe focused on alleged tax fraud and off-the-books employment practices.
Both countries have been coordinating in investigating Netflix’s financial misconduct which the company denies.
What Financial Fraud Netflix is Accused of?
The investigation centers on allegations that Netflix engaged in “serious tax fraud” and off-the-books employment practices.
French authorities are investigating Netflix’s tax filings from 2019 to 2021.
According to local media, Netflix previously reported its French revenues in the Netherlands, where its European headquarters is based, which helped minimize its tax obligations in France.
After altering this structure in 2021, Netflix’s declared French turnover surged from €47.1 million in 2020 to €1.2 billion in 2021.
However, investigators are now examining whether Netflix continued using methods to reduce reported profits in France after 2021.
