Beijing, April 16 - Hangzhou Wahaha Group and the group chairman, Zong Qinghou, are being investigated over income tax payments, the Chinese beverage giant's chief said in comments published on Wednesday.
Chinese authorities had launched a tax investigation into Zong and Wahaha in November, Zong said.
"I'm actively cooperating with tax authorities in the checkup," Xinhua news agency quoted Zong as saying.
The probe comes amidst a long-running dispute with Wahaha's joint venture partner, French food group Danone, which has accused the Chinese firm of setting up parallel and illegal operations alongside their venture that sells Wahaha branded products such as soft drinks and bottled water.
Zong said he had paid taxes that were due and a late fee in the second half of last year "after he acknowledged that Wahaha's French partner Danone failed to realise the commitment of paying tax on service fees, bonus and stock earnings for him in Singapore," Xinhua said.
In December, Danone and Wahaha agreed to cease all lawsuits in their highly public and acrimonious dispute and to enter talks to resolve the dispute.
But the talks have failed, and an extended deadline to resolve their dispute passed at the end of March.
($1=6.991 Yuan)