Foxconn Technology Group is facing scrutiny through tax audits and on-site investigations at some of its important subsidiaries, Reuters reported citing Chinese state media reports on October 22.
Domestically known as Hon Hai Precision Industry Company in China, Foxconn is the largest supplier of iPhones for Silicon Valley tech giant Apple.
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What is happening?
As per the report, China’s natural resources department has initiated on-site investigations into the land usage of Foxconn enterprises located in Henan province, Hubei province, and other areas.
The developments were disclosed in an exclusive report by Chinese media major, the Global Times. There was however no further details into the investigations or their timing, it added.
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Foxconn did not comment outside of business hours, as per the report.
Why the audits?
The tax audits and land use investigations are standard procedures applied to enterprises suspected of violating rules and regulations, Zhang Wensheng, the deputy dean of the Taiwan Research Institute of Xiamen University told the Global Times.
Zhang emphasized that it is essential for Foxconn’s subsidiaries to cooperate actively with these audits and investigations.
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“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,” he added.
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Updated: 22 Oct 2023, 10:00 AM IST
