India accuses Volkswagen of evading $1.4 billion in taxes

India has sent a notice to Volkswagen, accusing it of "deliberately" underpaying import duties on Audi, Volkswagen and Skoda car parts, thereby evading $1.4 billion in taxes, according to Indian customs documents. Volkswagen had imported "almost whole" unassembled cars, which according to regulations require an import tax of 30%-35% in India, but Volkswagen evaded taxes by "misdeclaring and misclassifying" these imports as "individual parts", paying only 5%-15% tariffs.