Panama Papers: Apple supplier Foxconn denies evading taxes worth $22.86bn

Apple supplier Foxconn has denied reports that it has allegedly evaded taxes worth up to $22.86bn (£16.06 bn) through investments in Panama. A number of well known names have figured in the Panama Papers leak of 11.5 million documents from law firm Mossack Fonseca.

Responding to rumours, Foxconn said it has paid over NT$48bn in taxes in Taiwan in 2015. Denying any wrong doing on its part, the company said it reserves the right to file lawsuits against media outlets for reporting false news, suggests a DigiTimes report.

It further said, conducting trades and investments via overseas subsidiaries has always been a necessary mechanism for international trading, but Foxconn has always reported related investments in its financial results.

Foxconn reported revenues of $318.44bn in September 2015, with a significant increase of up to 30% more than the previous month and 17.8% year-on-year. Its September revenue showed the highest figure in 2015 and the company was expecting better sales in October, with the strong demand of iPhone 6s.

Recently, Foxconn signed a deal to acquire Japanese display manufacturer Sharp. Foxconn formerly known as Hon Hai Precision Industry Co is paying 389bn yen ($3.5 billion) for the acquisition of a two-thirds stake.

"I see us as a catalyst for change," Foxconn founder and chairman Terry Gou said at a news conference following the signing ceremony at an LCD panel plant, jointly operated by the two firms, in Osaka. "If we cannot drive change in Sharp, our global competitors will eat us alive."

"My direction of turnaround is clear," Gou added. "We will focus on helping Sharp to transform its technology into products in a speedy and cost-competitive way with high quality."