tax and land use audits are ongoing

tax and land use audits are ongoing

Apple supplier Foxconn, officially known as Hon Hai, said it would cooperate with Chinese authorities in the investigation, with Chinese officials conducting tax audits as well as inspecting the land use of Foxconn subsidiaries.

Chinese media Global Times reported on Sunday, citing unnamed sources, that numerous offices of Hon Hai subsidiaries across China were subject to tax audits and land-use investigations.

As CNBC points out, Hon Hai Technology Group is the world’s largest manufacturer of contract electronics. The company assembles consumer products such as Apple’s iPhone.

“Compliance with legislation wherever we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn). We will actively cooperate with the responsible units on the relevant work and operations.” – says the company’s message.

Shares in Taipei-listed Hon Hai fell 3.29% in early morning trading on Monday.

The investigations come as Foxconn founder Terry Gou is vying to become Taiwan’s next president. Beijing claims the self-governing island is part of its territory.

In August, the official announced that he is running in Taiwan’s 2024 presidential election as an independent candidate.

Guo left the position of Foxconn’s head in 2019, and the position of a member of the company’s board in September of this year.

ProIT previously reported that Chinese sanctions have not (yet) affected Apple’s chip production, but things could get much worse.

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