Netflix Accused of Funnelling $430M of International Profits Into Tax Havens

Labor News, Industry News

Credit: Michael Haddad for Variety

Reprinted from Deadline Hollywood by Jake Kanter on January 15, 2020.

Netflix has been accused of funneling as much as $430M of its international profits into tax havens, while at the same time receiving more than a $1M in tax relief in the UK.

A report by British think-tank Tax Watch said that, like other major tech companies including Google and Amazon, “there is little doubt that Netflix has structured itself to avoid paying tax.”

In a report, Tax Watch estimated that between $327.8M and $430M of profit from outside the US was moved to low tax jurisdictions, such as the Netherlands, where Netflix operates a complex web of companies.

The think-tank examined Netflix’s operations in the UK to highlight how the company could be structured to lower its tax bill. Netflix’s British company Netflix Services UK provides services to Netherlands-based Netflix International, which collects revenue from UK subscribers. …

Deadline Hollywood 1/15

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About Jeffrey Burman 5195 Articles
Jeff Burman served on the Guild’s Board of Directors from 1992 to 2019. He is now retired. He can be reached at jeffrey.s.burman.57@gmail.com.

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