Authorities in France and the Netherlands conducted simultaneous raids at Netflix’s Paris and Amsterdam offices on Tuesday as part of a joint investigation into potential tax fraud, according to French judicial sources. The investigation, led by France’s National Financial Prosecutor's office (PNF), began in November 2022 and has involved cooperation between French and Dutch officials over several months.
The Amsterdam office, which serves as Netflix’s headquarters for Europe, the Middle East, and Africa, was also searched. The PNF said the probe examines suspicions of “covering up serious tax fraud and off-the-books work” related to Netflix’s income reporting for 2019, 2020, and 2021.
Reports from La Lettre suggest that until 2021, Netflix declared revenue generated in France through the Netherlands, minimizing tax obligations. After adjusting this approach in 2021, Netflix’s declared annual revenue in France increased significantly from €47.1 million in 2020 to €1.2 billion the following year. French investigators are now determining whether profit minimization strategies persisted beyond 2021.
While Netflix has not commented specifically on the raids, it reiterated its commitment to complying with tax regulations globally. Netflix, which first launched in France over a decade ago, now serves around 10 million subscribers in the country.
