Technology Netflix accused of transferring British profits to the Netherlands

Netflix accused of transferring British profits to the Netherlands

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Posted on Jan. 15, 2020, 1:15 p.m.Updated on Jan 15, 2020 at 2:57 p.m.

Netflix is ​​in the crosshairs in the UK. The American streaming platform is openly accused of tax evasion by a think tank specializing in taxation.

according to
TaxWatch UK

   , the Californian company would have transferred in 2018 alone between 327 and 430 million dollars of profits made outside the United States, and in particular in the United Kingdom, in the direction of countries with reduced taxes, starting with the Countries- Downstairs where its European headquarters are located.

The Dutch subsidiary, Netflix International BV, harvested 5.5 billion euros in revenue in 2018, or 6.27 billion dollars on the 7.8 billion dollars of income declared by the group for "streaming on the internet". 'international ". With its parent company Netflix International Holdings BV, it made a profit of 151 million euros in 2018, a margin of only 2.7% obtained thanks to the payment of 4 billion euros to "other companies in the group". The subsidiary's tax sheet reports € 91.61 million in 2018, of which € 84.9 million was paid … to the Brazilian tax authorities!

Tax breaks

The accusation is all the more embarrassing for Netflix since Netflix benefited from 51,000 pounds (57,000 euros) in tax rebates from the British government in 2018. The group would even have claimed 924,000 pounds in tax breaks in 2017 and 2018, building on the policy that aims to ensure the attractiveness of the United Kingdom in terms of audiovisual production.

In particular, quality series produced in the country are eligible, such as episodes of more than £ 1 million per unit in the "The Crown" saga. Netflix is ​​said to employ more than 200 people in the UK, where it invested $ 500 million to produce more than 50 TV programs or movies last year.

Only 48 million revenues declared across the Channel

Netflix has more than 10 million paid subscribers in the UK, which allow it to pocket more than £ 860 million in revenue per year. But his British financial report only reports 48 million euros in revenue across the Channel, for a pre-tax profit of 2.3 million euros.

The subject could become eminently political in the United Kingdom, where the number two of the Labor party John McDonnell has already seized it. This report shows that the government of Boris Johnson cannot be satisfied with putting in place its project of tax on the digital services, he judged in the "
Guardian

   ". A tax that could bring in 400 million pounds a year, but which Netflix is ​​exempt from, says George Turner, the director of TaxWatch UK.

Netflix had already been
suspected of tax evasion in Italy

   , where the Milan public prosecutor's office opened an investigation against the company. "Netflix has always paid the required taxes in the countries where we operate," said a spokesperson for Netflix after charges were laid against him in the United Kingdom. The group, whose market valuation reaches $ 150 billion, generated $ 1.2 billion in profits worldwide in 2018.

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