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Foxconn CEO Accused of Tax Evasion

By - Source: Tom's Hardware US | B 21 comments

Foxconn's CEO has been accused of tax evasion to the tune of $1.49 billion.

The suicide of an employee means that Foxconn has been in the headlines a lot this week. Today Chinapost reports that Tsang Ching-yi, a former reporter for a Chinese-language magazine, has said that owner of Hon Hai Precision Terry Gou is being investigated by the IRS.

Ching-yi wrote in an article on her blog that the Internal Revenue Services of the U.S. is investigating Gou for evading a total of NT$49.9 billion in tax. Hon Hai Precision has denied the claims, saying the story that claims Gou is required to repay the money and up to three times more as a fine is "a bunch a nonsense."

The same woman tried to blackmail Gou a few years back. Ching-yi was sent to prison for threatening to reveal information about Gou and tax evasion. The reporter was demanding Gou pay her $1 million for her silence. Tsang Ching-yi maintains that her article is based on facts and is demanding an apology from Hon Hai Precision.

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  • -3 Hide
    Aoster87 , July 24, 2009 7:30 PM
    $49.9 billion? Jeez that's a bit steep.
  • 4 Hide
    njalterio , July 24, 2009 7:41 PM
    aoster87$49.9 billion? Jeez that's a bit steep.


    That's in NTD....not US.
  • 2 Hide
    jerther , July 24, 2009 7:46 PM
    hmm, I think we have an interresting story happening on here... let's stay tuned :) 
  • 8 Hide
    cekasone , July 24, 2009 7:52 PM
    next story is going read "Ching-yi found dead after Foxconn motherboards fell on her"
  • 2 Hide
    Aoster87 , July 24, 2009 7:54 PM
    njalterioThat's in NTD....not US.

    Ahh hell, didn't see the NT :/ 
  • -2 Hide
    grieve , July 24, 2009 8:19 PM
    Does Terry Gou live in the USA?

    The IRS is the US government agency... Lets see them get Terry if he isn't American.
  • 0 Hide
    grieve , July 24, 2009 8:20 PM
    Terry Tai-Ming Gou, sometimes written as Terry Guo, (traditional Chinese: 郭台銘; pinyin: Guō Táimíng) (born October 8, 1950) is a Taiwanese tycoon who leads Hon Hai Precision, a company that manufactures electronics on contract for other companies.

    He isn't American... IRS can't do shit.
  • 1 Hide
    dman3k , July 24, 2009 8:34 PM
    That's about $1.5B USD. Hmmm... I guess Steve Jobs hasn't trained his sith apprentice well enough.
  • 0 Hide
    dman3k , July 24, 2009 8:39 PM
    grieveHe isn't American... IRS can't do shit.
    Please, research this before you make asinine comments like this one. Talking with your ass does not make you intelligent.
  • 0 Hide
    grieve , July 24, 2009 9:50 PM
    dman3kPlease, research this before you make asinine comments like this one. Talking with your ass does not make you intelligent.


    Well...
    He is not a USA resident nor a US citizen... The company he heads up is located in Tu-Cheng, Taiwan. Why exactly would he owe the IRS (USA) anything? He certainly wouldn’t pay American taxes.

    In Taiwan it seems they have a “National Tax Administration” which is NOT called IRS… in fact there is no IRS in Taiwan.

    Here in Canada we have the Canada Revenue Agency, the equivalent to the USA’s IRS… It is not the same.

    Since I am talkin out my ass, provide me a link to the Taiwan IRS. At least back up your replies with some evidence.
  • 1 Hide
    doomtomb , July 24, 2009 11:23 PM
    Boycott Foxconn
  • 1 Hide
    7amood , July 24, 2009 11:35 PM
    just more reasons to boycott the suspicious company...
  • 1 Hide
    chaohsiangchen , July 25, 2009 1:48 AM
    7amoodjust more reasons to boycott the suspicious company...


    Hon Hai Precision Mtd. is actually one of the largest corporations in the world. Their revenue alone is almost on the scale of Dell, and employ more than FMC does. They are practically numero uno of electronic OEM, and the second is not even one third of their scale. It's good to know that finally there is a Taiwan-based company became so big that it becomes loathful.

    grieveWell... He is not a USA resident nor a US citizen...


    Almost all prominent Taiwanese business people have green card, or are citizens of the US. They employ certain number of US citizens in CONTUS, so why not get a investment immigration status? Some already fled to the US after being prosecuted for corruption in Taiwan.
  • 0 Hide
    athreex , July 25, 2009 3:47 AM
    Let's not get ourselves away from the topic. This guy owes a LOT of money. But he might out of this unharmed. Considering he's CEO, he might what it takes to pay that debt and maybe more.

    haha! If that happens to some John Doe on this side, you'll be quite screwed. Your options will be: sell your soul, sell your ass. :) 
  • 0 Hide
    MRFS , July 26, 2009 1:50 AM
    http://www.supremelaw.org/sls/31answers.htm

    http://www.supremelaw.org/cc/fox2/insolvency.htm


    MRFS
  • -2 Hide
    Regulas , July 26, 2009 1:07 PM
    Tax evasion, you mean like half of the new DC socialist regime in power right now.
  • 0 Hide
    raabscuttle , July 27, 2009 4:07 PM
    Boycott, are you nuts? You like that "eVGA" video card? That "Intel" motherboard? That "Apple" iPhone? All Foxconn made. Just who are you going to boycott?
  • 0 Hide
    raabscuttle , July 27, 2009 4:08 PM
    Boycott, are you nuts? You like that "eVGA" video card? That "Intel" motherboard? That "Apple" iPhone? Your Wii, Play Station or XBox 360? All Foxconn made. Just who are you going to boycott?
  • 0 Hide
    raabscuttle , July 27, 2009 4:12 PM
    double the fun!
  • 0 Hide
    Anonymous , July 27, 2009 4:34 PM
    @raabscuttle

    Actually I happen to use none of those things. Not that I'm purposely boycotting Foxconn or anything, I just prefer Sapphire or MSI for graphics cards, AMD motherboards and nothing Apple.
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