• Jul 21st 2009 at 10:59AM
  • 8
When Volkswagen and Porsche sat down at dinner to discuss which one was going to eat the other one, they forgot to invite the German tax man. After VW came to terms with Porsche to take a 49.9% stake in the Stuttgart sports car maker for €8 billion (around $11.4 billion U.S.), the parties discovered there would be a €3 billion ($4.26B) tax bill on top of that.

Adding €3B just to conclude the deal, the way it's currently structured, makes it untenable for both parties. Qatar is still in the picture, but until it's decided who would pay the tax and what they would get in return, some sources are saying the whole thing could evaporate. And if that happened, that could force Porsche to turn to one of several unsavory chapters titled "BK" in the commercial code. Neither VW nor Porsche has yet commented on the tax issue. Thanks for the tip, John!

[Source: News.com.au]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 6 Years Ago

      I'm a big VW and Porsche fan, but please, enough already.

      Please get rid of egomaniac Pieche (sp) once and for all - and if Qatar gets involved, screw Porsche.

      When it comes to ego battles, nobody does it better than the Krauts.......
      • 6 Years Ago
      this report is wrong.. they know they have to pay tax..part of the VW offer is that they only do it if they find a way around the 3billion Euro tax.... if their layers don´t find a way around it they don´t make the deal... no news..

      The only soap is what the internatinal press is doing about it...
      • 6 Years Ago
      Obviously neither VW nor Porsche has former executives from Goldman Sachs working for both them and the German government.
      • 6 Years Ago
      I don't think anyone cares about constant updates on the negotiations between porsche and vw... just report something once it's done and signed...
        • 6 Years Ago
        I agree. The more I find out about the doings of so-called powerful CEO's, the more it just seems like a bunch of teenagers in highschool trying to look cool.
      • 6 Years Ago
      Can you say Scheisse on here? Shi...I mean shoot, I had no idea!
    Share This Photo X