After Volkswagen $1.4 Billion Tax Evasion Notice, India Accuses South Korean KIA Of Evading $155 Million Taxes
Weeks after German luxury car maker Volkswagen slapped a lawsuit against the government of India over a $1.4 billion tax evasion notice, KIA faces GOI’s sweet chin music for allegedly evading $155 million in taxes. Will the South Korean car maker take the same legal recourse as the Skoda maker?
Per reports, KIA has already filed a detailed response over the Indian authorities notice of tax evasion sent last year in April. Reuters reported that according to the 432-page government notice, Kia allegedly imported its Carnival model of cars in separate lots rather than a single unit shipment, thereby attracting lower customs duties. The company has a manufacturing unit in Andhra Pradesh’s’ Erramanchi in
Penukonda town.
KIA is the world’s third-largest automaker and competes with the likes of Hyundai and Suzuki in India.
Some of the other foreign firms in a legal tussle with the Indian government over taxation issues besides Volkswagen (Germany) and Kia (South Korea) are Vodafone (Britain), Cairn Energy (Britain), Pernod Ricard (France), and BYD (China).
Meanwhile, the GOI has cut tariffs on imported cars and motorcycles ahead of its premier’s meetup with shri shri Donald Trump, who has declared a tariff war on Canada, Mexico, and BRICS nations, including India and padosi China.
Indian tax authorities have sent a confidential notice to South Korean car maker Kia Motors accusing it of evading millions of dollars in taxes. https://t.co/OhD5SIy4gD— BBC News India (@BBCIndia) February 6, 2025
India accuses Kia of evading taxes of $155M by misclassifying component imports for Carnival car – it imported parts in different shipments to evade detection and pay lower tariffs, instead as CKD where tax is much more; Case similar to VW $1.4B notice https://t.co/mfDk1rULyN— Aditya Kalra (@adityakalra) February 5, 2025
See Also: Volkswagen Sues India Over $1.4 Billion Import Duty; Internet React With Nirmala Sitharaman Memes
Cover: Patrick Gawande / Mashable India
