US streaming service Netflix has agreed to settle a tax dispute with Italy, the corporate and authorized sources stated on Friday.
Milan prosecutors issued a press release saying they’d settled with a multinational video on-demand streaming firm for a interval overlaying Oct. 2015 to 2019 and requested it to pay EUR 55.8 million (roughly Rs. 460 crore).
They gave the settlement determine with out particularly naming the corporate concerned however three sources with data of the matter confirmed it was Netflix.
A Netflix spokesperson stated the corporate was happy 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 stated.
Prosecutors had opened an investigation into potential tax evasion three years in the past.
They claimed Netflix ought to have paid taxes in Italy as a result of it relied on digital infrastructure to stream content material to 2 million customers within the nation.
As a backdrop to the cost settlement, Netflix has now opened an workplace in Italy, organising a base in Rome and hiring greater than 40 workers.
The investigation by Milan prosecutors who argued that cables and pc servers utilized by Netflix amounted to a bodily presence in Italy, had been triggered by checks performed by Italy’s tax police.
Milan prosecutors up to now have probed different US tech giants comparable to Apple, Amazon, and Facebook for dodging taxes, permitting Italy to internet a number of billion euros in fines and tax funds.
© Thomson Reuters 2022