A source said Prosecutors in Milan say Netflix must pay taxes in Italy, despite the fact that there is no physical presence in the country due to the digital infrastructure it uses to stream content to 1.4 million users in the country.
Italian prosecutors have opened an investigation into alleged tax evasion targeting US streaming service Netflix, a source with direct knowledge of the case said Thursday.
The source confirmed a report in the Italian daily Corriere della Sera.
Prosecutors argue that the cables and computer servers used by Netflix have a physical presence in Italy.
Given the size of prosecutors suspected of tax evasion, they were forced to open an investigation, the source said.
The source said the investigation was triggered by checks carried out by the Italian tax police. Given the size of prosecutors suspected of tax evasion, they were forced to open an investigation, the source said.
No Netflix executive is under investigation because the probe is still in a preliminary phase, the source said.
It was not immediately possible to get a comment from Netflix./Investing.com