NETFLIX INC
NFLX
Communication Services
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exclusion reason
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Netflix operated a multi-country tax avoidance structure that routed European revenue through the Netherlands to minimize tax obligations, then concealed the scale of its local operations from tax authorities. In Italy, Netflix settled for 55.8 million euros after authorities found a "hidden permanent establishment" — the company had significant local operations but declared minimal local revenue. In France, the National Financial Prosecutor raided Netflix's Paris and Amsterdam offices on November 5, 2024 as part of a criminal probe for "covering up serious tax fraud" opened in November 2022. Netflix declared only 47.1 million euros in French revenue before 2021, then reported 1.2 billion euros after restructuring its corporate structure — revealing years of deliberate revenue concealment. TaxWatch UK documented $327-430 million in profits shifted to tax havens in a single year. The pattern — Netherlands routing, minimal local declarations, restructuring only under investigation pressure — demonstrates systematic tax avoidance across multiple European jurisdictions.
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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