Netflix

Italian Government Reportedly Investigating Netflix For Tax Evasion

Netflix’s operations in Italy are coming under scrutiny, as government officials there have reportedly launched an investigation into the streaming service for failing to file a tax return.

The Milan tribunal opened the probe because it believes Netflix has a substantial enough presence in Italy — including its physical infrastructure of cables and computers servers — to qualify as a local business, Bloomberg reports, and thus pay its share of taxes. News of the investigation first broke in a local outlet, Corriere della Sera.

Italy has reportedly been cracking down on other international businesses that boast local operations, Bloomberg reports, including Gucci (whose owner paid a reported $1.37 billion in May to settle an ongoing investigation spanning from 2011 to 217) and Mastercard (which said yesterday that it was complying with a mandatory audit after a raid by the Italian police). Furthermore, Amazon and Google have coughed up hundreds of millions of dollars in recent years to settle similar disputes.

Subscribe for daily Tubefilter Top Stories

Subscribe

“Netflix is closely working with Italian tax authorities. We pay all the taxes due in Italy and other countries,” the company told Bloomberg in a statement. “Netflix invests millions of euros in Italian production, thus contributing to creating jobs and sustaining the local creative community.”

To this end, just today — as news of the investigation broke — reports also surfaced that Netflix has inked a multi-year agreement to co-finance seven films with Mediaset, a broadcaster owned by Italian media tycoon and politician Silvio Berlusconi. Netflix will contribute most of the funding for the films, Bloomberg reports, and CEO Reed Hastings is expected to fly to Rome next week to publicly announce the partnership.

Share
Published by
Geoff Weiss

Recent Posts

TikTok’s 2025 economic impact included support for 410,000 jobs in the U.S.

In 2025, TikTok managed to put most of its regulatory issues in the U.S. to bed. As…

4 minutes ago

WME’s new Creator Labs team is launching YouTube channels for celebrities (and helping them monetize)

Update, Oct. 6: This story has been updated to more accurately reflect the relationship between…

3 days ago

Slow Ventures is investing in creators’ “cults”

Slow Ventures cofounder Sam Lessin says his company is investing in cults. "I think we're…

3 days ago

Have you heard? MrBeast’s Shark Tank spot, Minecraft goes after Roblox, and a robo racoon gets us in the mood for spooky season

Each week, we handpick a selection of stories to give you a snapshot of trends,…

3 days ago

The last thing creators add, the first thing viewers notice: Why Adobe is introducing music, speech, and sound effect generation to Firefly

In 2023, Photoshop developer Adobe jumped into generative AI with its launch of Firefly. Firefly…

3 days ago

Live Nation is capitalizing on the creator economy with a new firm

Ticketmaster parent Live Nation is getting into the creator biz. The publicly traded multinational corp,…

4 days ago