Taipei Times
Date: Dec 17, 2016
By: Kuo Chia-erh / Staff reporter

Feng Tay Enterprises Co (豐泰企業), a key supplier of Nike Inc, yesterday said it does not expect back tax issues at its two subsidiaries in China’s Fujian Province to affect its operations.

“Feng Tay will plead not guilty” to tax avoidance, company spokeswoman Amy Chen (陳麗琴) said by telephone, adding that the four shoemaking plants in Fujian only account for about 13 percent of the company’s total capacity.

Fujian tax authorities have claimed that the company should pay corporate income taxes because of transfer pricing problems, Feng Tay said in a filing with the Taiwan Stock Exchange earlier this week.

Transfer pricing is often used as a tool for corporate tax avoidance, indicating the allocation of the price for products and services sold among legal entities within a multinational corporation.    [FULL  STORY]