Gou says he will not pay taxes if no answer from NCC
By Ted Chen ,The China Post
May 9, 2014, 12:01 am TWN
TAIPEI, Taiwan -- Hon Hai Precision Industry Co. Chairman Terry Gou yesterday demanded that the National Communication Commission (NCC) swiftly provide an answer as to whether procurement of China-made telecommunications equipment will be allowed by regulators.
The company's subsidiary is among the competitors partaking in the pursuit for the fourth-generation (4G) mobile broadband network, and hopes to purchase telecommunications equipment made by China-based Huawei (華為).
Most notably, Gou told reporters gathered at the company's headquarters yesterday in Tucheng (土城) that if the NCC does not supply a definitive ruling within one week, he will hold back payment of taxes. Gou also hinted that he may relocate the company's headquarters out of Taiwan, depending on the regulator's response.
Gou stated that the equipment the company intends to purchase from Huawei will be used in non-critical parts of its forthcoming 4G network. Deployment of equipment procured from Huawei will be limited to non-vital, peripheral applications and transmission pipelines, said Gou.
In addition, Gou demanded a public announcement of the NCC's decision, whether they approve or deny the procurement bid. “Indecision and suspension in limbo without resolution by regulators on this matter is not acceptable,” Gou said.
Gou implied that NCC officials had quietly asked him to retract documents applying for the approval of the procurement order, adding that the action suggests that government officials are timid and reluctant to take a firm stance in backing their decisions.
According to Gou, contentions over the matter and concerns over national security are unfounded. “Rather than the blade, its wielder should be scrutinized,” said Gou. In the event of a national security breach, Gou stated that he will be the first person to turn himself in to law enforcement.
Citing the fact that equipment made by Huawei is currently being deployed in Europe and Singapore, Gou stated that there should be no national security concerns for Taiwan. In an effort to avoid national security threats, Gou stated that he is willing to assemble the Huawei equipment in Taiwan and utilize chips fabricated by TSMC under the supervision of governing bodies.
On his intent to withhold tax payments, Gou railed against the government's ideals of taxation justice by citing the much lower tax rates imposed on China-based Taiwanese companies whose shares are listed on the exchange with the “F-” prefix, while native companies operating in Taiwan are subject to much higher taxes. Gou added that his enterprise may reap the same tax reduction benefits through a reshuffling of organizational structure, swapping the roles and relationships of the parent company and its subsidiaries.