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Volkswagen: Indian tax dispute is “life or death” battle

Indian customs authorities have alleged that Volkswagen misclassified its imports to circumvent hefty imports taxes. By Stewart Burnett

A lawyer representing Volkswagen Group has told the Bombay High Court that its INR 1.4bn (US$160m) tax dispute with Indian customs authorities is a “matter of life and death” for its local operations. Customs officials have alleged that Volkswagen misclassified imports of Audi, Skoda and Volkswagen vehicles as individual parts, effectively allowing it to circumvent higher customs taxes.

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