Hon Hai Precision Industry Co has reportedly been fined a relatively light 20,000 yuan (US$2,816) by Wuhan authorities for misreporting taxes, amid a Chinese probe into the company founded by independent presidential candidate Terry Gou (郭台銘).
The Chinese financial information service Eastmoney.com earlier this week reported that Wuhan tax authorities had last month fined the company, also known as Foxconn Technology Group.
According to the report, Hon Hai was fined 20,000 yuan for reporting some temporary research personnel as full-time researchers, totaling eight people in 2021 and 15 people last year.
Photo: Bloomberg
Chinese tax authorities last month began a probe into Hon Hai operations in China, where the company employs hundreds of thousands of workers.
Without providing many details on the investigation, the Global Times quoted an expert as saying that Taiwan-funded enterprises should assume social responsibility and “play a positive role in promoting the peaceful development of cross-strait relations.”
The move was largely interpreted as intended to exert political pressure on Gou, who months earlier announced his intention to run for president in the January election as an independent.
Since the probe was announced, Gou has only appeared publicly three times and has declined media interviews.
Democratic Progressive Party Legislator Hung Sun-han (洪申翰) on Wednesday said that the fine was relatively light because the probe had already achieved its intended effect, with Gou likely to drop out of the race soon.
Chinese authorities also likely do not want to scare off foreign investment any further, as the nation’s economy is already struggling, Hung added.
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