Netflix Mulls Tax Evasion Case Appeal to Tribunal

Netflix is reportedly considering taking its case to the Income Tax Appellate Tribunal concerning the alleged tax evasion of Rs 196 crore, as stated in a media report. The international tax division of the Income Tax department has accused the streaming giant of evading income tax in this substantial amount.

Netflix’s decision to approach the tribunal follows a ruling earlier this year by the Dispute Resolution Panel that favoured the tax department. According to the Income Tax department, Netflix earned Rs 503 crore from its Indian operations between April 2020 and December 2020.

Although Netflix has offered to pay Rs 13.36 crore, the department has calculated the tax liability to be Rs 490 crore, contending that the operations conducted in India through a Permanent Establishment (PE) arrangement are subject to taxation, resulting in a tax liability of Rs 196 crore.

A spokesperson for Netflix is quoted as stating, “We are committed to fully complying with tax laws and their global requirements.”