Netflix agrees to settle Italian tax issue for $59 million--report
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Netflix (NASDAQ:NFLX) on Friday reportedly agreed to pay the equivalent of $59 million in fines in Italy to settle a tax dispute in the country.
According to a report from Reuters, sources with "knowledge of the matter" confirmed that Netflix (NFLX) had agreed to the settlement that covers the period of between October 2015 to 2019. Italian prosecutors had argued that Netflix (NFLX) was liable for paying taxes in Italy as the company had used digital infrastructure to stream its content to 2 million subscribers during the four-year period.

Prosecutors in Milan said that Netflix's (NFLX) use of servers and other technology in Italy equated to the company having a physical presence in the country, and was subject to Italian taxes.
Earlier this week, a report on Netflix (NFLX) said that the streaming TV giant is losing a significant number of longtime customers who have been subscribers for three years or more.