Netflix fined in Italy for 56 million euros in unpaid taxes

The Italian tax authorities fined the US giant for 56 million euros

It is certainly not a good time for Netflix who is already forced to see a simultaneously collapse of its shares and a drop in subscribersdue to the latest decisions taken by the company that have made many of its customers turn up their noses.

As if that were not enough, not long ago, the Italian tax authorities had started an investigation to check that the taxes relating to our country have been paid correctly, discovering that this was not the case at all. The dispute therefore closes with a plea bargain between the tax authorities and the US giant, with Netflix which will have to pay out an amount equal to almost 56 million euros for taxes not paid in Italy in the period of time from 2015 to 2019.

Netflix deals with the Italian tax authorities

The precise amount that Netflix will have to pay to the tax authorities is € 55.850.513 to compensate for revenue that was not recorded under the title of “Taxes, penalties and interest to define any dispute with the Italian tax authorities”. This situation is also due to the fact of a difficult cataloging of the company’s activities in Italy.

In fact, the services that the US multinational offers, until 2019, were cataloged as activities carried out by a foreign company “Completely unmanned and characterized exclusively by an advanced technological structure“. This results in the fact that Netflix it had no real employee and this definition was used to refer to the company’s servers located in our country.

However, this situation has changed since last January, also due to the growth that the company has had in Italy with the number of subscriptions that has skyrocketed. According to the Italian jurisdiction, in fact, there is now a new company registered under the name of Netflix Italy srl which is therefore subject to taxation by our country.