The allegations arose by a former Vanguard tax lawyer claiming Vanguard’s low fees are an illegal tax dodge and that Vanguard should have charged investors an extra $19.8 billion in investment fees this year and that Vanguard owes almost $35 billion in taxes, interest, and penalties since 2007.
Vanguard claims that it does not owe any corporate income taxes, but Vanguard may soon be required to pay back taxes because of the low fees it charged.
The whistleblowers' share of the settlement might be approximately $10 Billion.