«Breaking News» Taxman probes Netflix accounts after streaming giant declared pre-tax UK profits of just £1.12m

Netflix is under investigation over its tax arrangements, it was reported last night.

The online streaming giant admitted its British accounts are ‘under examination’ by HM Revenue and Customs.

Details of the investigation were disclosed in documents filed to American regulators, the Times reported.  

 Netflix Services UK Limited – the company’s British subsidiary - employed only 14 people at its London office by the end of December, according to its most recent accounts. Its British accounts are under examination by HMRC [File photo]

It comes as big technology companies including Google and Facebook come under increasing scrutiny over their tax affairs.

Netflix has reported an increase in revenues and profits, according to accounts filed this week.

According to accounts filed in early October, Facebook boosted its UK revenues to £1.26bn for the year ending December 2017, up from £842m in the previous 12 months.

The company’s corporate tax bill, which has long been scrutinised by MPs and consumer groups, increased from just £5.1m to £15.8m.

Facebook reduces its tax bill in Britain by routing a significant amount of revenue via its international headquarters in Dublin.

Chancellor Philip Hammond has previously threatened a new tax on tech companies, called a ‘digital services tax’, which could tax revenues. The Government has pledged to take a tougher stance on the international giants’ tax structures.

Netflix’s main European office is located in Amsterdam, which has become a favourite of technology companies due to its soft tax rules.

Earlier this year, the Chancellor Phillip Hammond called for international action to ensure technology firms pay their fair share of tax around the world [File photo]

Netflix Services UK Limited – the company’s British subsidiary - employed only 14 people at its London office by the end of December, according to its most recent accounts.

Its British arm declared revenues of £23.9m (26.9 million euros) and pre-tax profits of £1.12million (1.27 million euros).

Netflix’s standard package for British users offers unlimited streaming for £7.99 a month. If the company’s 9 million subscribers pay around this much per month, Netflix makes £71.9million from its British subscribers each month. This works out to be around £863m each year.

HMRC could be looking into the transfer pricing deal between the British arm and its Dutch parent, which determines the amount of revenues that Netflix reports in the UK. Netflix did not explain why HMRC was examining its tax arrangements.

A Netflix spokesman told the Times: ‘HMRC regularly audits the accounts of UK companies and we’re currently engaged with them on this standard review.’

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https://hienalouca.com/2018/12/03/taxman-probes-netflix-accounts-after-streaming-giant-declared-pre-tax-uk-profits-of-just-1-12m/
Main photo article Netflix is under investigation over its tax arrangements, it was reported last night.
The online streaming giant admitted its British accounts are ‘under examination’ by HM Revenue and Customs.
Details of the investigation were disclosed in documents filed to American regulators, the Times repo...

It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.

Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.

Dianne Reeves Online news HienaLouca





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