A Closer Look At Netflix's UK Tax Issue

By Miles Dean (March 5, 2020, 3:30 PM EST) -- Netflix Inc. is the latest U.S. tech company to find its tax affairs under media and political scrutiny, even being accused of "superhighway robbery" in the House of Commons.[1] This is nothing more than scaremongering  — Netflix quite properly structures its affairs in a tax-efficient way so as to increase its profits and keep its service competitive. It is certainly not doing anything that U.K. law does not envisage.

Yet when the media covers the tax affairs of large U.S. tech companies like Netflix, Amazon.com Inc., Airbnb Inc. or Google Inc., it often conflates revenue and profit. Much of the coverage...

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