The Japanese corporation of Netflix, a major video distribution company, was pointed out by the Tokyo National Taxation Bureau that it had not received profits commensurate with its business from a Dutch corporation, and it was pointed out that it had missed a declaration of about 1.2 billion yen. I understand.
According to people familiar with the matter, Netflix's Japanese subsidiary bought distribution rights from Japanese movie and animation production companies and sold those rights to Netflix's Dutch subsidiary.
At this time, the Japanese corporation received from the Dutch corporation about the same amount as the cost of acquiring the distribution right, and the Tokyo National Taxation Bureau determined that the Japanese corporation did not receive the profit commensurate with the business. That is.
As a result, profits were transferred to Dutch corporations with tax incentives, and corporate tax paid in Japan was reduced.
For this reason, the Tokyo National Taxation Bureau has pointed out that about 1.2 billion yen has been missed in the three years until 2019.
The additional tax amount including the underreported additional tax is about 300 million yen.
Netflix entered the Japanese market in 2015, and by 2020, the number of members in Japan exceeded 5 million.
Netflix's Japanese subsidiary commented, "We had discussions under Japanese tax law and filed an amendment in June last year. Currently, there are no unresolved discussions in Japan."
Also, last year, we reviewed the organization regardless of the tax audit, and now we are not paying to the Dutch corporation.