State Administration of Taxation of ChinaWuhanThe Municipal Taxation Bureau fined Foxconn RMB 20,000 (about US$2,786) for preparing an incorrect tax calculation base and violating the Tax Collection and Management Law.
Hexun.com reported that Wuhan Fulian Technology was fined RMB 20,000 by the Second Inspection Bureau of the Wuhan Municipal Taxation Bureau of the State Taxation Administration for preparing incorrect tax calculation base and violating the tax collection management law.
The reason for the penalty is that the related party included a part of the expenses of personnel not directly involved in R&D as labor expenses of R&D personnel and deducted the excess. Among them, the cost for 8 people in 2021 is RMB 880,000 (about US$120,000), and the cost for 15 people in 2022 is RMB 1.05 million (about US$140,000).
As per the rules, research and development expenditure deducted beyond the scope of corporate income tax of the parties must be carried forward to the taxable income.
Equity panoramic penetration chart shows ownership of Wuhan Fulian Technologysettlement private loanFulian Precision Electronics is wholly owned, and Zhengzhou Fulian Precision Electronics Industrial is a wholly owned subsidiary of Fulian.
The Global Times revealed on the 22nd of last month that China’s tax authorities conducted tax audits on Foxconn’s key enterprises in Guangdong, Jiangsu and other places; And the Department of Natural Resources conducted on-site investigations on the land use of Foxconn’s key enterprises in Henan. Hubei and other places.
At that time, Foxconn’s parent companyis honorableThe campaign office of group founder Terry Gow said it would be left to the Hon Hai Group to respond; Hon Hai Group issued a key message on the afternoon of October 22, saying, “Law and compliance around the world are the core principles of Hon Hai. The Group will actively cooperate with relevant units in the processing of work.”
China (TagstoTranslate) Hon Hai (T) Wuhan (T) Zhengzhou
