Mon Dec 02 11:26:06 UTC 2024: ## Volkswagen Accused of $1.4 Billion Tax Evasion in India
**Mumbai, India** – The Indian government has accused Volkswagen of a massive tax evasion scheme, alleging the automaker owes US$1.4 billion in unpaid import duties. A 95-page notice from the Maharashtra Office of the Commissioner of Customs claims Skoda Auto VW India, the local subsidiary, misclassified imported car components to avoid higher taxes.
The government alleges that instead of declaring complete, unassembled vehicles (CKD kits), Volkswagen imported them as individual parts, paying significantly lower import duties (5-15%) compared to the standard 30-35% levied on CKD imports. This allegedly involved using multiple shipments and invoices to evade detection. The affected models include the Skoda Superb and Kodiaq, the VW Tiguan, and the Audi Q5 and A4.
The notice states that between 2012 and the present, Volkswagen paid US$980 million in import duties, US$2.35 billion less than what the government claims is owed. The investigation involved searches of Volkswagen facilities in 2022, the seizure of documents, and questioning of Managing Director Piyush Arora. Investigators reportedly uncovered internal software used to break down bulk vehicle orders into smaller shipments of parts.
In a statement, Skoda Auto VW India asserted its compliance with all laws and regulations, and pledged full cooperation with the authorities. The company has 30 days to respond to the notice. This development is significant for the Indian automotive industry and will be closely monitored.
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