French and Dutch authorities raided Netflix offices in Paris and Amsterdam.
Investigating Money Landering
The raids are part of an ongoing investigation into alleged “aggravated money laundering” and “undeclared labor within an organized group,” according to a French judicial source who spoke with POLITICO.
In Paris, the search was led by France’s anti-corruption and financial crime agency, OCLCIFF, with national prosecutors present.
Meanwhile, Dutch magistrates conducted a parallel raid on Netflix’s Amsterdam office, with French investigators also on-site. The cross-border operation was coordinated by Eurojust, the EU’s judicial cooperation unit, according to Digi24.
Suspicions Around Netflix's Tax Practices
This investigation began in November 2022, spurred by suspicions around Netflix’s tax practices in Europe.
Reports from early 2023 by the French publication La Lettre indicate that Netflix’s approach to tax optimization in France raised red flags.
The company reportedly channels its French revenue through its Dutch headquarters, reducing its tax liabilities in France. Following these reports, the French Ministry of Finance launched a tax audit, reviewing Netflix’s financial records from 2019 to 2021.
These recent raids mark another step in Europe’s push to scrutinize the tax and labor practices of major tech companies.
Netflix joins a growing list of multinationals facing similar inquiries as EU nations crack down on tax avoidance and seek to enforce local laws.
Netflix has not yet issued a statement on today’s raids or the ongoing investigation. It’s also unclear what specific evidence authorities might have seized. However, the outcome of this case could impact Netflix’s European operations and heighten scrutiny on global tech firms’ compliance with EU regulations.
