Milan prosecutors issued a statement saying they had settled
with a multinational video on-demand streaming company for a period covering
Oct. 2015 to 2019 and asked it to pay 55.8 million euros ($59.1 million).
They gave the settlement figure without specifically naming
the company involved but three sources with knowledge of the matter confirmed
it was Netflix.
A Netflix spokesperson said the company was pleased to have
the matter finalised.
"We have maintained constant dialogue and cooperation
with the Italian authorities and continue to believe that we have acted in full
compliance with Italian and international rules," the spokesperson said.
Prosecutors had opened an investigation into potential tax
evasion three years ago.
They claimed Netflix should have paid taxes in Italy because
it relied on digital infrastructure to stream content to 2 million users in the
country.
As a backdrop to the payment agreement, Netflix has now
opened an office in Italy, setting up a base in Rome and hiring more than 40
employees.
The investigation by Milan prosecutors who argued that
cables and computer servers used by Netflix amounted to a physical presence in
Italy, had been triggered by checks conducted by Italy's tax police.
Milan prosecutors in the past have probed other U.S. tech
giants such as Apple, Amazon and Facebook for dodging taxes, allowing Italy to
net several billion euros in fines and tax payments. -Reuters