Online streaming giant Netflix is “under examination” by Britain’s HMRC over its tax arrangements.
Netflix didn’t explain why it would be under the regulator’s scrutiny but said: “HMRC regularly audits the accounts of UK companies and we’re currently engaged with them on this standard review.” HMRC’s statement is still awaited.
The development comes as big technology companies are facing increasing scrutiny over their tax affairs. In the UK, Chancellor Philip Hammond has also threatened a new tax on tech companies, called a ‘digital services tax’, which could tax revenues.
Netflix has a market capitalisation of around $125bn (£97.5bn). It made $485m in pre-tax profit last year and paid $135m in corporation tax overall during the same period. Out of that amount, $88m was for tax bills in countries outside the US.
good titles we bring to you and your kin (this December) pic.twitter.com/HcKntMwW0U
— Netflix UK & Ireland (@NetflixUK) November 23, 2018