Journalist Group Criticizes Hong Kong's Tax Investigation Into Media Outlets

Epoch Times

28-05-2025

The Hong Kong Journalists Association (HKJA) said that the association and many Hong Kong media groups, journalists, and their relatives have recently been investigated by the Hong Kong government for taxes paid many years ago.
At least eight organizations and 20 individuals were affected. On May 21, the chairperson of HKJA, Selina Cheng Ka-yu, held a press conference, criticizing the Hong Kong government for accusing journalists of owing taxes without providing a reason and demanding considerable advance payments. She described it as a way to punish journalists without trial and that it hurts press freedom.
A total of eight media platforms and organizations were audited by tge tax department, including the HKJA, Hong Kong Inmedia, The Witness, Hong Kong Free Press, BoomheadHK, and ReNews, affecting at least 20 people, among them the founders, journalists, and even their then-unmarried spouses. Cheng and her parents were also examined for payroll tax, profits tax, and rates.
Cheng described the current assessment approach by the tax bureau as 'bizarre.' She said that all the cases involved were for the 2017–18 or 2018–19 years, for which they had already filed tax returns and paid the full amount.
Among these cases, some were not operating, had no business registration, or did not have a physical company, but the tax bureau assigned a 'business registration number of convenience,' which was later found by HKJA not to belong to any organization or person. She said there were also cases where the profit tax for the year mentioned was before the company was even established, and one person was accused by the tax bureau of having income several times more than his salary that year.
Cheng and HKJA Investigated
Cheng said that she served as a reporter for the investigative team of Hong Kong 01 in 2018 and 2019, with an annual income of about HK$230,000 ($29,500). However, the tax bureau recently claimed that her 'real income' that year was HK$630,000 ($81,000), but did not provide any details.
She said that the HKJA had been subject to tax audit since 2023 and has been required to pay HK$450,000 ($58,000) in taxes. After a partial deferral, it still needs to pay HK$300,000 ($38,500). In a face-to-face meeting with the tax bureau, she said officials pointed out the errors in those numbers. At the end of 2024, HKJA again submitted their return, but received no response from the tax bureau, and the group was audited again in March this year.
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She questioned why the tax bureau did not bring charges based on evidence, which amounts to actually 'punishing the journalist without trial, she said.' She stressed that if the tax bureau believes that someone is evading or owing taxes, it should provide proper evidence.
She believes that the situation is putting considerable pressure and burden on journalists and small media organizations in terms of time, finances, and mental stress. The HKJA is concerned that the media is increasingly being censored and fenced in by commercial and financial laws, which have a negative impact on press freedom in Hong Kong.
Hong Kong Chief Executive John Lee met with reporters on May 27, stating that all taxpayers must accurately file tax returns and pay taxes on time, and 'no one has the privilege to evade taxes.'
Commissioner of Inland Revenue Benjamin Chan addressed the issue on May 24, stating that any taxpayer, whether a company or an individual, may be subject to a tax review or audit by the department,
'Some taxpayers have raised questions about whether the Inland Revenue Department would audit for tax returns based on specific industries or background. I want to reiterate that we did not and would definitely not do that,' he said.
'As I've mentioned, based on our system, we ensure consistency in treatment for all taxpayers. Every taxpayer has the chance to be invited for a tax review or audit.'
Since the Chinese Communist Party (CCP) forced the implementation of the Hong Kong National Security Law, press freedom in Hong Kong has deteriorated. Many journalists have been arrested on charges of violating the NSL and other crimes. Senior executives of Apple Daily and Stand News have been impriso
ned.
Reporters Without Borders recently released the 2025 World Press Freedom Index, in which Hong Kong is ranked 140th with a score of 39.86 out of 100, its lowest score on record. It was the first time that Hong Kong was listed in the worst 'very serious' category, alongside mainland China.