The problems of Netflix do not seem to stop. Just that they have transferred from India to France. You see, Netflix India was caught in a tax fraud case just a few weeks back. Now, the same case is there in France and they have been raided too.
On Tuesday, French authorities showed up at Netflix’s Paris office with some serious questions. They’re investigating two main things: whether Netflix has been dodging taxes and if they’ve been hiding how they employ people.
Here’s what raised eyebrows: Netflix had about 7 million subscribers in France during 2019-2020, but they only paid about $1 million in taxes. That seemed suspiciously low to French authorities. Think about it if you’re selling that much popcorn, shouldn’t you be paying more in taxes?
The interesting part? Netflix seems to have changed its tune recently. In 2020, they reported earning about $51 million in France. But by 2022, that number jumped to $1.3 billion! That’s quite a leap, right?
The French aren’t just working alone on this. They’re teaming up with investigators in the Netherlands, where Netflix’s European headquarters is located. They’re searching both offices to understand how this whole tax situation worked.
By the way, Netflix isn’t the first big company to face this kind of scrutiny in France.
Netflix hasn’t commented on the situation yet, but you can bet this story isn’t over. Stay tuned to Binged for more updates.