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Volkswagen India accused of allegedly evading $1.4B in taxes

  • Volkswagen India has been accused of allegedly evading $1.4 billion in taxes by paying less import duties on components for Audi, VW, and Skoda branded cars.
  • The Indian government issued a notice to Volkswagen India about evading levies by 'mis-declaring and mis-classifying' imported car parts.
  • Volkswagen imported unassembled car parts, but declared them as 'individual parts' to pay lower taxes between 5%-15% instead of 30%-35%.
  • The investigation found that different shipment consignments were used to evade detection and 'willfully evade payment.'

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