No tax and chill: Netflix’s offshore millions
Online video streaming company Netflix streamed up to $430m of profit from their international operations into tax havens in 2018.
“No Tax and Chill”, an analysis of the company’s accounts in the US, the Netherlands and UK shows the company is the latest in a growing list of digital giants that use a web of offshore companies to shift profit offshore and avoid tax.
In 2018, despite making $1.2 billion in worldwide profits and booking an estimated £860 million in revenue from its 10 million strong UK subscribers, the company paid no tax in the UK. On the contrary, the company received £924,000 back from the UK taxpayer in 2017/18 in tax credits.
Although where the profit from Netflix’s international operations end up remains a mystery, the company’s US accounts suggest that large amounts end up in tax havens.