Netflix Agrees to Pay $59.1 Million To Settle Tax Dispute in Italy
According to a company official, Netflix has agreed to settle its tax dispute with Italy. According to the tax authorities, the company owed EUR 55.8 million for the period from 2015 to 2019. Netflix has confirmed that it is pleased with the resolution of this issue.
The story began 3 years ago when the Italian prosecutor's office launched an investigation into possible tax evasion by Netflix. They argued that Netflix should pay taxes to Italy because it used its infrastructure for streaming content. An investigation by the Milan prosecutor's office found that the computer servers and cables used by the company amounted to its physical presence in the country, and therefore all income among the local population should be taxed.
In order to formalize the agreement and pay the required amount of money, Netflix recently opened an office in Italy and hired 40 employees. The Milan prosecutor's office already has a lot of experience in the past in collecting payments for tax evasion from digital giants such as Facebook, Amazon, and Apple. So, the country's economy is under reliable protection.
This is absolutely the right decision for Netflix. Since, first of all, as a result of such proceedings, the image of companies suffers. Now the reputation of Netflix has been completely cleared and the company can continue its activities in other countries.
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