Netflix to Settle Tax Dispute With Italy for $59.1 Million, Opens First Office in Rome Hiring Over 40 Employees

Netflix faced open investigation for potential tax evasion as the company relied on digital infrastructure to stream content to users in Italy.

Netflix to Settle Tax Dispute With Italy for $59.1 Million, Opens First Office in Rome Hiring Over 40 Employees

Prosecutors had opened an investigation into potential tax evasion by Netflix three years ago

Highlights
  • Netflix was pleased to have the matter finalised
  • Netflix should have paid taxes in Italy
  • Netflix has now opened an office in Italy
Advertisement

US streaming service Netflix has agreed to settle a tax dispute with Italy, the company and legal sources said on Friday.

Milan prosecutors issued a statement saying they had settled with a multinational video on-demand streaming company for a period covering Oct. 2015 to 2019 and asked it to pay EUR 55.8 million (roughly Rs. 460 crore).

They gave the settlement figure without specifically naming the company involved but three sources with knowledge of the matter confirmed it was Netflix.

A Netflix spokesperson said the company was pleased to have the matter finalised.

"We have maintained constant dialogue and cooperation with the Italian authorities and continue to believe that we have acted in full compliance with Italian and international rules," the spokesperson said.

Prosecutors had opened an investigation into potential tax evasion three years ago.

They claimed Netflix should have paid taxes in Italy because it relied on digital infrastructure to stream content to 2 million users in the country.

As a backdrop to the payment agreement, Netflix has now opened an office in Italy, setting up a base in Rome and hiring more than 40 employees.

The investigation by Milan prosecutors who argued that cables and computer servers used by Netflix amounted to a physical presence in Italy, had been triggered by checks conducted by Italy's tax police.

Milan prosecutors in the past have probed other US tech giants such as Apple, Amazon, and Facebook for dodging taxes, allowing Italy to net several billion euros in fines and tax payments.

© Thomson Reuters 2022


Should you pick Vivo over Galaxy S22 and OnePlus 10 Pro? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Netflix
Mi Band 7 Launch Set for May 24, Xiaomi Teases Larger Display With Increased Viewing Area
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »