Milan’s prosecutors released a statement stating that they had settled with a multinational video-on-demand streaming company covering from Oct. 2015 to 2019. They asked for EUR 55.8 million (roughly Rs. 460 crores).
The parties did not disclose the settlement amount, but three people knowing the matter confirmed that it was Netflix.
Netflixspokesperson stated that the company was happy to resolve the matter.
The spokesperson stated that they had maintained constant communication and cooperated with the Italian authorities. He also said they believe that the actions taken complied with international and Italian rules.
Three years ago, the Prosecutors opened an investigation into possible tax evasion.
They said Netflix should have paid taxes to Italy as it relied upon digital infrastructure to stream content for 2 million Italian users.
Netflix opened an office in Italy as a backdrop for the payment agreement. It has a base in Rome, and more than 40 employees have been hired.
Milan’s Tax Police had initiated the investigation that led to Milan prosecutors arguing that Netflix cables and computer servers were a physical presence in Italy.
In the past, Milan prosecutors have investigated other US tech giants like Apple, Amazon, and Facebook for tax dodging. This has allowed Italy to make several billion euros in fines and tax payments.