Volkswagen is now under investigation for possible tax evasion.
German prosecutors are looking into tax evasion charges related to Volkswagen’s understating of CO2 levels and whether the automaker was responsible for not paying its due share of automotive taxes as a result of the recent diesel scandal. In some markets including Germany, a vehicle’s CO2 emissions contributes to determining how much tax car owners must pay every year.
Naturally if a vehicle claims to emit less CO2 emissions, then vehicle owners are paying less taxes. According to a member of the prosecutor’s office, the damage caused by the tax evasion is “not insignificant” and the investigation could also involve fraud.
Investigators are already focusing on Volkswagen’s diesel engines and the company had its headquarters and other offices raided last month as part of a probe into Volkswagen’s cheating of diesel emissions tests. Currently it affects about 11-million vehicles worldwide and it appears that the diesel scandal is far from coming to a resolution.
Most recently, Volkswagen acknowledged that it also cheated with its V6 diesel engines that were equipped with an auxiliary emissions control device that was not disclosed during testing procedures.
[Source: Automotive News]
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