French and Dutch offices for Netflix were raided by authorities pertaining to an investigation over tax fraud and concealed employment as of late. Netflix hasn’t commented on the situation until now.
On the subject of tax fraud, it was reported that Netflix paid $1.06 million in taxes for 2019-2020 and it declared revenues of $51 million the same year. They claim that Netflix kept its taxes low by involving a separate unit registered in the Netherlands.
In response to the allegations, they said the following:
“We are co-operating with the authorities in France, where Netflix is a significant contributor to the local economy — and we comply with the tax laws and regulations in all the countries in which we operate.”
Netflix is also being accused of hiring freelancers or contractors for non-freelance or non-contract positions and failing to label them as such. Doing so causes the freelancers to miss out on medical benefits and employee benefits such as minimum wage, holidays, and overtime pay. This means they are denying protection to workers who are entitled to it under law.
Netflix hasn’t commented on this claim as of yet.
Source: CBR
