Netflix to pay $59 million to settle Italian tax dispute

div classBodysc17zpet90 cdBBJodivpMILAN Reuters – U.S. streaming service Netflix has agreed to settle a tax dispute with Italy, the company and legal sources said on Friday.p

pMilan prosecutors issued a statement saying they had settled with a multinational video ondemand streaming company for a period covering Oct. 2015 to 2019 and asked it to pay 55.8 million euros 59.1 million. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThey gave the settlement figure without specifically naming the company involved but three sources with knowledge of the matter confirmed it was Netflix.p

pA Netflix spokesperson said the company was pleased to have the matter finalised.p

p“We have maintained constant dialogue and cooperation with the Italian authorities and continue to believe that we have acted in full compliance with Italian and international rules,” the spokesperson said.p

pProsecutors had opened an investigation into potential tax evasion three years ago.p

pThey claimed Netflix should have paid taxes in Italy because it relied on digital infrastructure to stream content to 2 million users in the country.p

pAs a backdrop to the payment agreement, Netflix has now opened an office in Italy, setting up a base in Rome and hiring more than 40 employees.p

pThe investigation by Milan prosecutors who argued that cables and computer servers used by Netflix amounted to a physical presence in Italy, had been triggered by checks conducted by Italys tax police.p

pMilan prosecutors in the past have probed other U.S. tech giants such as Apple, Amazon and Facebook for dodging taxes, allowing Italy to net several billion euros in fines and tax payments. p

p1 0.9446 eurosp

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pp Reporting by Emilio Parodi and Elvira Pollina Editing by Keith Weirp

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