German prosecutors open tax evasion investigation at VW

Five suspects are thought to be involved in second investigation over emissions

Photograph: Alexander Koerner/Getty Images
Photograph: Alexander Koerner/Getty Images

German prosecutors opened a new criminal investigation into Volkswagen after the carmaker said it found faulty emissions readings in petrol-powered vehicles and more diesel cars.

Prosecutors in Braunschweig, who are already looking into VW’s diesel products, are now formally examining the information and are looking into tax evasion allegations, a spokesman said. It could also involve fraud.

The prosecution is examining whether owners of Volkswagen vehicles for which carbon dioxide emissions were understated paid too little automotive tax.

The damage caused by the tax evasion is “not small”, he said.

READ MORE

The investigation is looking at five suspects, who weren’t identified.

Agencies