Panama Papers leak suggests iPhone manufacturer Foxconn may have evaded $22 billion in taxes

By , Apr 8, 2016

foxconn production

A whopping 11.5 million documents from Panamanian law firm Mossack Fonseca, so-called Panama Papers leak, reportedly suggest that the world’s top contract fabricator Foxconn, which assembles iPhones and many other consumer electronics products for other tech firms, may have evaded taxes worth up to a massive $22.86 billion via investments in Panama’s offshore companies.

Foxconn vehemently denied its involvement in the Panama Papers scandal. In an eyebrow-raising move, the Taiwanese firm then dropped veiled threat it might resort to suing news publications that make up such rumors, according to DigiTimes on Friday.

“Conducting trades and investments via overseas subsidiaries has always been a necessary mechanism for international trading, but Foxconn always reports related investments in its financial results,” the company claimed.

The biggest leak in history—the Panama Papers—include more than 11.5 million financial and legal records which expose a system that enables crime, corruption and wrongdoing hidden by secretive offshore companies.

Thus far, the scandalous revelations have undermined public trust of more than a few household names in business and politics. Just yesterday, for example, the Prime Minister of the United Kingdom, Dave Cameron, had to come clean on the fact that he owned shares in an offshore fund.

Or, take the prime minister of Iceland as an example.

This guy resigned after reports that he’d owned an offshore company in the British Virgin Islands with his wife. In the video below, he can be seen stuttering and loosing all credibility after being unexpectedly confronted with questions regarding his dealings with offshore companies mentioned in the Panama Papers.

If anything, The Guardian posits, if the super-rich actually paid what they owe in taxes, the United States “would have loads more money available for public services,” including a highly controversial universal basic income.

Apple’s name so far did not come up in the Panama Papers though the company has received its fair share of criticism for funneling money earned overseas through tax havens in Ireland in order to avoid paying high corporate tax in the United States.

Source: DigiTimes

  • Share:
  • Follow:
  • 5723alex .

    “The Guardian posits, if the super-rich actually paid what they owe in taxes, the United States “would have loads more money available for public services,” including a highly controversial universal basic income.”

    There is not a single American on the list of the Panama Papers. There are however hundreds of loyal Chinese party members on that list.

    • SouthsideCripNigga

      lol who said there’s no Americans? It’s 2 terabytes of data and you haven’t seen the whole leak yet cause no news company has leaked all of it and do you really think if there was any high ranking Americans on it they wouldn’t stop any news outlets from reporting it? There’s people from every country they’re just releasing the ones that are against America for propaganda

      • The US ranks higher than Panama for stashing illegal money.
        Here’s why:

      • SouthsideCripNigga

        That’s a lie to make America look like there’s no corruption only American websites would write some dumb ish like that, all politicians and Wall Street brokers have Swiss or Panamanian bank accounts no ones dumb enough to hide their money in America because it could easily be found by any agency. They used accounts in their countries because those countries have laws against other countries digging to deep into those accounts to see who really owns them or where money was transferred from

      • Didn’t read the stuff at the link, did you? It says that its easier to stash money in the US, there’s no need to funnel the money elsewhere. Funneling it outside is what will get you caught. Keeping it within the country is relatively easier. Capiche?

      • SouthsideCripNigga

        Um no I read the link and it’s wrong, no one with any money worth hiding hides it in the US, that’s a fact. You obviously didn’t read my comment, the fbi, irs and cia can only do so much in other countries when investigating tax fraud, money laundering or embezzlement due to foreign laws. If people hide their money in the US there’s basically no limit on what they can dig up to prove what they were doin is illegal. All people committing any crime involving money hide their money in cuba, Switzerland or Panama because no one can touch their money especially if it’s under a different name. You can only do so much with a shell company in America before IRS comes knocking

  • Jamessmooth

    But did Foxconn do anything ILLEGAL? That’s the big question. People so easily forget that companies and corporations are in business TO MAKE MONEY. If they didn’t do anything illegal, there is absolutely nothing wrong with this.

    • Xee

      But it’s morally wrong and should be made illegal. It’s only currently legal (just) due to tax loop holes, which are supported by the rich/corporations/politicians that benefit from them.

      • Blip dude

        Adultary is also morally wrong, but isn’t illegal either. Am I the only one willing to admit that I may take advantage of a loophole or 2 in tax laws myself if I was in this position?? Sounds to me like the companies aren’t the problem, but the fact that these laws haven’t had their loopholes closed because let’s face it, would it even be a surprise if out lawmakers are making a penny or 2 out of those same loopholes somehow.

    • SouthsideCripNigga

      Of course they’re doing things that are illegal if they weren’t they wouldn’t be hiding their money. The main thing they’re avoiding is US taxes just like how most of apples money is in foreign accounts they barely pay any taxes on ANY of the money they make

  • Smegmatron

    Viva Panama chucha