TAIPEI, Oct 23 (Reuters) – China’s tax probe of Foxconn is unusual and the company was possibly singled out for “political reasons,” two sources close to Foxconn told Reuters on Monday, after a Chinese state-backed paper said the firm was the subject of tax audits and land use probes.
The two sources, who declined to be named because of the sensitivity of the matter, said the audit was unusual because it came less than three months ahead of Taiwan’s presidential election and amid Foxconn’s diversification drive to move some production out of China.
Foxconn referred Reuters to its previous response on the matter and said it had no further comment. (Reporting by Yimou Lee; Editing by Ben Blanchard and Christian Schmollinger)
