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From January 2022, the taxation of season tickets will take place in Italy
The colossus of streaming Californian makes peace with the Italian taxman. Netflix, at the end of the investigations conducted by the Revenue Agency, he paid in a lump sum just over 55.85 million of euro by way of taxes, penalties and interest to settle any pending with the Italian tax authorities for the period from October 2015 to 2019. This is what is stated in a note signed by the Milan prosecutor, Marcello Violaand by the deputy prosecutor, Fabio De Pasquale.
The text states that, from 1 January 2022, Netflix has set up an Italian company which has begun to stipulate contracts and invoice the fees deriving from subscriptions signed with national users. And this will determine the taxation in Italy of the income produced by the sale of subscriptions to users residing in the national territory.
The “Group’s Content Delivery Network” Netflix was found to consist of over 350 serverswhich would have been used exclusively and permanently installed throughout the national territory at Data Centers and the main telephony operators “. The investigations found that the streaming giant video had technological infrastructures in Italy to generate income with subscriptions also on the Italian territory.
Hence the tax dispute closed with a payment of over 55 million of Euro. “This complex and evolved technological infrastructure would have formed the basis, writes the Public Prosecutor, on which the Guardia di Finanza first and the Revenue Agency later identified the technical-legal prerequisites, required by international and national standards, for the configuration of a building ‘material’ organization “, ie with technological infrastructures,” of a foreign company, deemed suitable to produce business income in Italian territory “
From the investigations, which began in 2019, as stated in the note also signed by the deputy prosecutor and owner of the International Affairs department, Fabio De Pasquale, it emerged “the existence and operation in Italy of a permanent establishment not declared to the Italian tax authorities” of a Dutch company of the group Netflixi.e. its European headquarters.
Investigations which, it continues, “follow the development of preliminary analyzes conducted by the Guardia di Finanza on the main business models of the Big Tech of the Digital Economy”. The streaming platform “which uses its own network for the transmission of digital content capable of delivering 100 percent of the Group’s video traffic – writes the Public Prosecutor – before the investigation was launched was not fiscally identified in Italy” .
The analyzes, “with the contribution of experienced professionals in the technological and IT sector”, have led to “exactness reconstruction of the extension of the digital infrastructure with which the multinational group was able to spread the video traffic with very high quality standards “. Infrastructure” considered essential and significant for the development of the business of the foreign company on the national territory, as it would have guaranteed the offer of a quality streaming service to end users, thanks to the proximity of the servers to the market of reference”.
Practically, Netflix would have had a “secretive permanent establishment“in Italy, and not because it had offices or offices of which there was no formal trace, as happened in other cases, but in a” material “sense, ie for the technologies and infrastructures located in Italy to broadcast in streaming.
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