Italian prosecutors have, according to an initiate, started an investigation into the alleged tax evasion by Netflix. According to prosecutors, the company has to pay tax in Italy, while Netflix has no office in the country. The company uses the local digital infrastructure to offer streaming services.
Moreover, according to the prosecutors, the use of cables and computer servers in Italy is considered to have a physical presence.
The anonymous source states that Italian tax inspectors suspect that the amounts involved are so high that an investigation is mandatory. The research is still in a preparatory phase and therefore no specific managers are being investigated.
Netflix has more than 1.4 million customers in Italy. The company has not yet given an official response.
Italian prosecutors previously conducted similar investigations into tech companies such as Apple, Amazon and Facebook due to alleged tax evasion. In various cases, the country managed to collect billions of euros in fines and tax payments.