Foxconn, an iPhone supplier, is being investigated for alleged rule infractions and is subject to a tax audit

 Foxconn, an iPhone supplier, is being investigated for alleged rule infractions and is subject to a tax audit

According to allegations from Chinese official media, Foxconn Technology Group is being investigated on-site at several of its significant subsidiaries and is the subject of tax audits. 

Foxconn, a subsidiary of the Chinese company Hon Hai Precision Industry Company, is Apple's main iPhone supplier in the Silicon Valley. 

What is going on?

According to the article, Foxconn businesses in Henan and Hubei provinces, among other places, have been the subject of on-site examinations by China's department of natural resources. 

The Global Times, a prominent outlet of Chinese media, broke the news in an exclusive article. No other information about the investigations or their timing, it said.

According to the article, Foxconn declined to respond after business hours. 

Why do these audits?

According to Zhang Wensheng, the deputy dean of the Taiwan Research Institute of Xiamen University, tax audits and land use inquiries are common practices undertaken to businesses accused of breaking laws and regulations.

Zhang underlined how crucial it is for Foxconn's affiliates to actively participate in these audits and inquiries. 

He said, "Foxconn's subsidiaries are required to actively comply with audits and investigations, and if there are any legal or regulatory infractions, they should acknowledge fault, accept punishment, and step up rectification.