TAIPEI, Oct 23 Reuters Shares in Taiwan39;s Foxconn, a major supplier of Apple39;s iPhones, dropped as much as 3 on Monday after a report the company is the subject of tax audits and land use probes in China just months ahead of a Taiwanese election.

China39;s statebacked the Global Times said some of Foxconn39;s key subsidiaries in China were the subject of tax audits and that China39;s natural resources department had also conducted onsite investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere.

The Global Times did not give details of the tax or land use probes, which have not been officially announced by any Chinese government department.

Foxconn said in a statement on Sunday that legal compliance was a fundamental principle of its operations everywhere, and that it would actively cooperate with the relevant units on the related work and operations.

It declined further comment on Monday. Foxconn, formally called Hon Hai Precision Industry Co Ltd, makes most iPhones at the Zhengzhou plant in Henan province where it employs about 200,000 people, though it has other smaller production sites in India and southern China.

The Chinese state media report comes less than three months before Taiwan votes in presidential and parliamentary elections.

Foxconn39;s billionaire founder Terry Gou, who no longer has a role in the company39;s daytoday operations and stepped down as company chief in 2019, is running as an independent…