China inspects iPhone supplier Foxconn over tax audits

Foxconn Technology Group, Apple Inc's largest supplier of iPhones, has been subjected to tax audits at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media has reported.

China's natural resources department also conducted on-site investigations on the land use of enterprises of Foxconn in Henan, Hubei provinces and other places, according to the exclusive report published on Sunday in the nationalist tabloid, the Global Times. It did not elaborate on the investigations or the timing of them.

Foxconn did not immediately respond for comment outside of regular business hours.

Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times in an interview that the tax audit and land use investigations conducted by the relevant departments stemmed from any enterprise suspected of violating laws and regulations and was a normal procedure.

"Foxconn's subsidiaries are obliged to actively cooperate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification," Zhang said.