Netflix has agreed to resolve a tax dispute with Italy, according to the business and legal sources on Friday. Prosecutors in Milan released a statement claiming they had reached an agreement with a worldwide video-on-demand streaming provider for the period October 2015 to 2019 and ordered it to pay 55.8 million euros ($59.1 million).
They did not name the corporation involved in the settlement, but three persons with knowledge of the situation verified it was Netflix.
According to a Netflix spokeswoman, the firm is glad to have the problem resolved.
“We have maintained continuous contact and collaboration with the Italian authorities and continue to feel that we have behaved in complete conformity with Italian and international regulations,” added the spokeswoman.
Prosecutors began looking into alleged tax evasion three years ago.
They said Netflix should have paid taxes in Italy because it depended on digital infrastructure to deliver material to the country’s 2 million consumers.
As part of the payment deal, Netflix has launched an office in Italy, establishing a base in Rome and recruiting more than 40 people.
The probe by Milan prosecutors, who believed that Netflix’s usage of cables and computer servers amounted to a physical presence in Italy, was initiated by tax police investigations in Italy.
Prosecutors in Milan have already investigated major U.S. internet behemoths such as Apple, Amazon, and Facebook for tax evasion, netting Italy several billion euros in fines and tax payments.
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