Foxconn faces tax audit, land use probe

BEIJING (Reuters) - Foxconn Technology Group,ex foreign exchange official website Apple Inc (NASDAQ:)'s largest supplier of iPhones, has been subjected to tax audits at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday.

China's natural resources department also conducted on-site investigations on the land use of enterprises of Foxconn in Henan, Hubei provinces and other places, according to the exclusive report in the nationalist tabloid, the Global Times. It did not elaborate on the investigations or the timing of them.

Foxconn did not immediately respond for comment outside of regular business hours.

Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times in an interview that the tax audit and land use investigations conducted by the relevant departments stemmed from any enterprise suspected of violating laws and regulations, and was a normal procedure.

"Foxconn's subsidiaries are obliged to actively cooperate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification," Zhang said.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!