Another day, and another report of a large company trying to avoid paying taxes somewhere in the world, has hit the news media. This time around it’s Tesla Motors Inc. that is facing accusations of tax dodging in Denmark. The high-end electric carmaker uses a lot of subsidies to help keep its price tag lower for its customers. However, according to tax authorities in Denmark, the automaker is unfairly taking advantage of a tax break in the country, which amounts to tax dodging.
At issue is the fact the Tesla recently registered about 2,500 vehicles just ahead of the expiration date for an important tax break. Some government officials feel that Tesla registered these cars simply to get the tax break, which is known as bulk registration and is an illegal practice in the country. While Tesla originally denied the allegations, they later admitted to being involved in the purchase, but they claim that someone at company headquarters has been ordering number plates for all markets. The company also said that demand for the car has recently increased, due in large part to the fact the Denmark recently changed its tax code.
Those changes will end up increasing the price tag of Tesla’s popular new Model S from $97,233 to $269,262 in Denmark thanks to the new registration taxes. Meantime, Tesla says that it also plans to fight the new tax changes in European court. Time will tell if Denmark will be able to punish Tesla for the alleged bulk registration move, but it appears certain that this is a battle that has yet to see its last stand.