Latest news about ethical consumerism


 

Netflix accused of avoiding UK corporation tax

Dec 23

Written by:
23/12/2015 08:33  RssIcon

Investigation finds sales booked in Luxembourg

A Sunday Times investigation has found that Netflix paid no UK corporation tax last year despite being estimated to have around 4.5m subscribers in the UK.

 

 

According to the paper, it generated an estimated £200m of revenue in Britain last year but any profits from the UK in 2014 were booked overseas. There is no suggestion that Netflix has broken the law.

The paper reported that latest accounts for Netflix International BV, which was based in Luxembourg until the end of last year, show a net turnover of £415m and profits of £11.3m in 2014, with British customers accounting for the largest proportion of turnover. It says the company paid income tax in Luxembourg of £573,396, equivalent to a rate of about 5%.

The company says it is in “expansion” mode and is making overall losses on its international operation. A spokesman said its British subsidiary employs about 12 people and will pay some corporation tax this year, adding: “We are fully compliant with all applicable rules.”

Ethical Consumer's own investigation, carried out in 2013, found that the company was booking UK sales in Luxembourg. Receipts issued to paying subscribers said that the subscription fees were paid to Netflix Luxembourg S.à r.l. 

 

See our guide to online movie streaming.

 

 

This story has been added to our corporate database. The database powers all our live product guides, giving the score for each company on our rankings tables. Find out more about how we rate companies.

 

 

 


 

Tags:
Categories:

 

Full News Archive

 

Ethical news archive going back to July 2009.

Read More

Ethical Consumer Blog

Jack Wolfskin and SeaWorld

  • 22/02/2017 10:14

Should Jack Wolfskin inherit SeaWorlds boycott?

Ethical Consumer Blog

Climate lobbying in the Trump era

  • 21/02/2017 12:36

Which trade associations are lobbying against climate policy

Ethical Consumer Blog

Now you can shop fair tax

  • 17/02/2017 14:14

The Fair Tax Mark tells us about a new initiative that helps consumers shop with those companies paying a fair rate of tax

Ethical Consumer Blog

The Beauty Myth

  • 17/02/2017 09:40

The impact of the booming market for make-up is far from pretty says Simon Birch.

Ethical Consumer Blog

Amazon growing its high street book presence

  • 16/02/2017 09:49

Company opening more book stores in the US