Hon Hai denies owing China NT$792 billion in back taxes

Hon Hai denies owing China NT$792 billion in back taxes

2023-11-03

Hon Hai, which is facing a tax audit in China, has rejected rumors that it owes the Chinese government 180 billion yuan in back taxes. The social media rumors allege that Hon Hai must pay back the hefty sum, which is approximately NT$792 billion. They also claim that 20,000 acres of Hon Hai’s land in China will be confiscated by the state. The Taiwanese tech firm has issued a social media post and market announcement to refute the claims. It emphasized that all the rumors were false and that it reserved the right to take legal action.

Voice of anchor (Oct. 23)
Chinese news station
Tax authorities recently launched a tax investigation into Foxconn’s major enterprises in Guangdong, Jiangsu, and other areas.

Hon Hai, also known as Foxconn, is under investigation in China over its taxes and land use. The probe has drawn attention on both sides of the strait. According to the latest rumor, Foxconn owes China NT$792 billion in back taxes.

Independently operated media (Nov. 1)
China
Terry Gou must be feeling tormented as of late. Foxconn was audited by China’s tax authorities and now the results are out. They’re demanding payment from Foxconn, which owes 180 billion yuan in back taxes.

Responding to the online rumor, Hon Hai published a denial on the Chinese microblogging site Weibo. It said the false rumor was seriously damaging to the group’s reputation. It said it reserved the right to take action against online accounts that were spreading the information.

The company also put out a market announcement, calling on the public to report all false articles. It stressed that it reserved the right to pursue legal action.

Terry Gou (December 2022)
Hon Hai founder
I no longer concern myself with Hon Hai’s operations. Don’t ask me what’s going on with Hon Hai. When have you seen me concern myself with Hon Hai’s affairs? I am retired.

Douglas Hsu
Far Eastern Group chair
The attitude we all need to adopt is, “My accounts are an open book. Come and audit them anytime.” It’s very normal for China to investigate accounts.

Remarking on the investigation, Far Eastern Group Chair Douglas Hsu urged the public not to read into a routine occurrence. Even so, many see it as China’s attempt to force Terry Gou out of the presidential election.

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