By Paul Rachwal
Monday, Jun 25th, 2012 @ 1:54 pm
 
Porsche Automobil Holding SE wants to complete VW's buyout of its sports car business as soon as possible. This would cost the company nearly $1.9 billion in taxes, however, despite the automaker finding a way around this fee if it waits to complete the deal after August, 2014.

"The state would benefit significantly through higher tax income," Martin Winterkorn, Porsche CEO said in a prepared speech at a shareholder meeting this week. Winterkorn also serves as VW's CEO. He went on to say about 700 million euros (about $874 million) a year are wasted by inefficiencies from keeping operations separate, Reuters reported.

VW already owns 49.9 percent of Porsche, with the remaining 50.1 percent costing about $5.65 billion. The tax-evading loophole has to do with VW transferring one voting share to Porsche in the deal, as it would then be seen as a reshuffle of the company rather than an outright sale by tax officials.
  

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