Netflix settles with Italian government: $59 million in back taxes

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Sina Technology News Beijing time on the evening of May 20, according to reports, the US streaming video service provider Netflix It said today that the company has agreed to resolve a tax dispute with the Italian government.

At the same time, Milan prosecutors also issued a statement saying that they had reached a settlement with a multinational streaming video service provider for a period from October 2015 to 2019 and demanded that the company pay 55.8 million euros (about 59.1 million US dollars). ) tax.

While prosecutors in Milan did not name the multinational streaming video service provider, three people familiar with the matter confirmed it was Netflix.

In response, a Netflix spokesperson said the company was pleased to resolve the matter. “We have been in constant dialogue and cooperation with the Italian authorities and continue to believe that our actions are in full compliance with Italian and international rules,” the spokesman said.

Three years ago, prosecutors in Milan launched an investigation into potential tax evasion by Netflix. Prosecutors in Milan say that while Netflix has no physical presence locally, Netflix should pay taxes in Italy because it uses digital infrastructure to deliver streaming content to the country’s 2 million subscribers. The cables and computer servers used by Netflix are equivalent to a physical presence in Italy.

Today, Netflix has opened an office in Italy, established a base in Rome, and hired more than 40 employees.

In addition to Netflix, Milan prosecutors have also targeted Apple over the past few years , Amazon and Facebook Other U.S. tech giants have been investigated for tax evasion and fined billions of euros.

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