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A unit of Foxconn Technology (OTCPK:FXCOF) has been fined 20,000 yuan ($2,800) by Chinese tax authorities for overstating expenses while China is undertaking a larger probe into the Taiwan-based company’s operations, Bloomberg News reported.
The Foxconn Industrial Internet Co. unit in Wuhan was fined by a local tax agency over its accounting of research and development expenses in 2021 and 2022, the report added citing the country’s National Center for Public Credit Information.
The move comes amid China probing the Apple (AAPL) supplier’s — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — tax operations in the southern provinces of Guangdong and Jiangsu and land use in Hubei and Henan, where Foxconn manufacturers iPhones, as per an October report in state media.
In its Nov. 14, Q3 earnings release Foxconn noted that, in response to the recent tax audit situation at the group’s China campuses, Hon Hai CFO David Huang had said during an investor conference that the company operates under the principle of complying with laws and regulations around the world; and that at present, the group’s production and operations were normal.
In August, Foxconn’s (OTCPK:FXCOF) billionaire Founder Terry Gou said that he was making an independent bid for Taiwan’s presidency. However, his campaign activities have diminished after the investigations were announced, but he remains in the race.
Foxconn Industrial Internet is a vital contract manufacturer for Foxconn in China with about 199,000 employees, as per its website.