Streaming service Netflix has agreed to pay USD 59 million to resolve a tax dispute in Italy.
According to ABC News, Sunday (22/5/2022) the payment includes taxes, fines, and interest calculated from October 2015 to 2019. Netflix also formed an Italian legal entity this year that will determine the tax burden in Italy based on local subscriptions. .
Prosecutors in Milan said the investigation was triggered by the physical presence of technology infrastructure in Italy, including 350 servers aimed at generating revenue.
An investigation by Milan prosecutors, who argue that the computer cables and servers used by Netflix are identical to a physical presence in Italy, has been triggered by an investigation by Italian tax police.
Similarly, Netflix also welcomed the settlement that ended the case covering the 2015 to 2019 tax years.
"We cooperated with the authorities during this investigation and, as we have always explained, we acted fully in accordance with Italian and international tax law," Netflix said in a statement.
Netflix revealed it will officially open an office in Rome earlier this month, employing about 70 employees.
Meanwhile, Milan prosecutors in the past have also investigated other US tech giants such as Apple, Amazon and Facebook for tax evasion, which allows Italy to pay fines and tax payments of several billion euros.
