French and Dutch authorities raided Netflix Inc's (NASDAQ:NFLX, ETR:NFC) offices in Paris and Amsterdam as part of an investigation into potential tax fraud and labour law breaches.
According to reports, investigators including France’s anti-corruption and financial crime office (OCLCIFF) and the National Financial Prosecutor’s Office carried out the searches on Tuesday morning.
The probe began in November 2022 and it is examining possible "aggravated tax fraud" and workers' rights violations.
Sources cited by the Financial Times said the investigation is partly focused on Netflix’s practice of routing French subscription revenue through its European headquarters in Amsterdam between 2019 and 2021, with further scrutiny on its tax arrangements after 2021.
Although no charges have been filed, the European Union’s criminal justice agency Eurojust is coordinating the case.
Netflix told news outlets it is cooperating with authorities, emphasising its commitment to complying with local tax laws.