Foxconn CEO Accused of Tax Evasion

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.