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Taiwan's Foxconn responds to raid by Chinese tax authorities

Tax authorities search offices in Guangdong and Jiangsu

Foxconn founder Terry Gou appearing at a presidential campaign rally. (CNA photo)

Foxconn founder Terry Gou appearing at a presidential campaign rally. (CNA photo)

TAIPEI (Taiwan News) — Foxconn offices in China were subject to a surprise search by tax authorities, with Foxconn issuing an official response on Sunday afternoon (Oct. 22).

Foxconn issued a press release noting that all companies within the group operate legally, per UDN. "Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn). We will actively cooperate with the relevant units on the related work and operations,” it said.

Chinese officials conducted a surprise tax audit of Foxconn, with Chinese state media reporting that tax authorities have conducted tax audits in Guangdong and Jiangsu, with the natural resources department conducting on-site investigations of Foxconn’s land use in Henan, Hubei, and other places.

So far, Chinese officials have not explained the reasons for the tax and land use inspections of Foxconn, nor have they announced the results of the inspections. In the past, China has taken action against Taiwanese businesses operating in China such as the Far Eastern Group to ensure companies adhere to it's "one China" principle.

Foxconn founder Terry Gou (郭台銘) recently announced his signature campaign for Taiwan’s upcoming presidential election has already surpassed the required threshold to enter the race. This makes the timing of China’s surprise tax inspections suspicious.

Taiwan’s Ministry of Economic Affairs (MOEA) said its Industrial Development Administration has contacted Foxconn regarding this issue. Foxconn expressed gratitude to the MOEA, which will provide future assistance when appropriate.