TAIPEI: According to two sources close to Foxconn, a significant supplier of Apple’s handsets, the company is being investigated for tax evasion in China. They claimed that the investigation was made public for political reasons related to the approaching elections in Taiwan.
The state-backed Global Times newspaper in China reported on Sunday that some of Foxconn’s major subsidiaries there were the target of tax audits and that the country ‘ natural resources department had carried out on-site investigations into the land use made by the company in the provinces of Henan and Hubei as well as other locations.
The two options, who declined to be identified due to the delicate nature of the situation, claimed that Taiwanese authorities had recently audited a number of businesses they did not name, but they held the opinion that Foxconn’s investigation had only been made public for political reasons.
They emphasized the assessment, which was conducted less than three months prior to Taiwan’s presidential election and as Foxconn was attempting to diversify its manufacturing outside of China.
Chinese officials in Henan, Hubei, Guangdong, and Jiangsu did not respond right away to faxed Reuters requests for comment on Foxconn assessments.
Foxconn, officially known as Hon Hai Precision Industry, is a significant investor in China and employs hundreds of thousands of people. Beijing frequently hails it as an illustration of the success of Chinese investors in the nation.
Foxconn has been moving some of its production lines, including those for smartphones, from China to India, according to the first cause, who told Reuters they saw the inspection as a” notice.”