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03/29/2024 02:40:33 am

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German Prosecutors Launch Tax Probe Into Volkswagen Following Emissions Test Scandal

Volkswagen

(Photo : REUTERS/Jim Young) Volkswagen said that it may have overstated things while admitting the auto emission problems in November.

Things are getting from bad to worse for Volkswagen. Following the recent emissions test scandal, German prosecutors are launching an investigation into Volkswagen books regarding possible tax issues.

According the CNN, the tax probe will include an investigation of five Volkswagen employees. The employees were not named. However, Volkswagen spokeswoman Birgit Seel said that the employees are "accused of being responsible for falsifying information with respect to the carbon dioxide emissions."

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Seel added that due to the false emissions test results, some vehicles were wrongly taxed and might have received a lower rate than usual. According to Financial Time, a preliminary review of the evidence at hand provided sufficient cause for German authorities to launch a formal investigation into the matter.

Volkswagen's emissions test result falsification resulted in lower carbon dioxide readings for some of its vehicles. These cars were subsequently taxed lower than those that emits more toxins. In Germany, cars that emits less carbon dioxide receive lower tax rates than those that emit more.

Initial investigations reveal that at least 800,000 Volkswagen cars were wrongly taxed because of the rigged emission test result.

On Monday, Volkswagen admitted that more Audi models are involved into the emission test scandal than originally estimated.

Following the discovery of its emission cheating scheme, Volkswagen did not deny it and admitted that it did rig some tests for cars destined to be released in the United States and Europe.

In order to prepare for the arduous legal battle ahead, the German company has started to cut back on its investments in order to stockpile its resources needed to pay for the scandal. The company has already set aside more than $9 billion to deal with the issue.

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