Netflix does not have a local office in Italy, but prosecutors argue the streaming giant should pay taxes in the country, because it uses the local digital infrastructure.
ReutersThe investigation comes despite Netflix not having a local office in Italy. Prosecutors in Milan argue though that Netflix should pay taxes in the country, because it uses the local digital infrastructure to stream content to an estimated 1.4 million users in Italy, Reuters quoted a source as saying. reported that Netflix hasn't filed a tax return in Italy, but prosecutors argue its servers and fiber optic cables give it enough of a physical presence to qualify as a local business.
Netflix earlier in the week reported financials for 2018 for its Netflix Studios U.K. operation, which is defined as a service unit of its European headquarters where all subscriber revenue and the like from across Europe are compiled. As a result, the financials don't provide a full picture of the company's U.K. business performance.
Netflix reported a 37 percent profit growth for 2018 in the U.K. to €2.3 million as revenue jumped 44 percent to €48 million .
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