Mon Dec 02 11:26:08 UTC 2024: ## Volkswagen Faces $1.4 Billion Tax Evasion Claim in India
**NEW DELHI** – Indian authorities have issued a notice to Volkswagen, demanding approximately $1.4 billion in back taxes. The German automaker is accused of deliberately underpaying import duties on car components for its Audi, Volkswagen, and Skoda brands. According to a September 30th notice, Volkswagen imported nearly complete vehicles as unassembled parts (CKD units), which are subject to a 30-35% import tax. However, the company allegedly misclassified these imports as individual components, resulting in a significantly lower 5-15% duty.
The investigation alleges that Skoda Auto Volkswagen India, Volkswagen’s Indian subsidiary, used this method for various models, including the Skoda Superb and Kodiaq, the Audi A4 and Q5, and the VW Tiguan. The use of multiple, smaller shipments further complicated detection, according to the notice. This is one of the largest tax evasion claims ever issued in India. Volkswagen has yet to publicly respond to the allegations.
First Piper 