Volkswagen India unit faces tax evasion notice worth $1.4 billion Reuters News Agency

It was Reuters. First to report India has issued a notice to German carmaker Volkswagen for allegedly evading $1.4 billion in taxes by “deliberately” paying low import taxes on parts of its Audi, VW and Skoda cars. Volkswagen shares fell as much as 2.13 percent on the Frankfurt stock exchange after the Reuters report..

Why it matters

News of the potential liability, which could be as high as $2.8 billion with fines, could weigh on VW’s India business. The company is a small company in India but plans to invest $1.8 billion to manufacture EVs and hybrids in Maharashtra. The Wolfsburg-based carmaker is also closed. Growing conflict With its hard work in Germany on plant closings and layoffs, while Chinese rivals attack Europe’s established automakers on their home turf.