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HKFP
2 days ago
- Politics
- HKFP
Gov't will not intervene in press union chief Selina Cheng's unlawful termination suit against Wall St Journal
The Department of Justice will not intervene in Hong Kong Journalists Association (HKJA) chairperson Selina Cheng's lawsuit against her ex-employer the Wall Street Journal over her alleged unlawful termination after taking on the union's leadership role. Cheng's lawyer Adam Clermont said in a LinkedIn post on Friday that the DoJ has confirmed it would not be intervening in the private prosecution against Dow Jones & Company, the publisher of the US newspaper, 'allowing our pursuit of justice to proceed unimpeded.' HKFP has reached out to the justice department for comment. Under the Prosecution Code, the Secretary for Justice is entitled to intervene in private prosecution cases, and can take over the proceedings or shut the case down. The next hearing has been scheduled for Wednesday at the Eastern Magistrates' Courts, according to judiciary records. Cheng was fired from the Wall Street Journal last July, telling reporters she was informed her position at the press union would be 'incompatible' with her job and that she did not have permission to take on the role. When she was terminated, the chief editor of the Wall Street Journal's foreign desk told her that her job had been eliminated due to restructuring, Cheng, who covered China's automobile and energy sectors for the paper, said. Cheng filed a complaint to the Labour Department last November, after which it consulted the Department of Justice on whether to prosecute the Wall Street Journal. During a court hearing in February, the justice department requested an eight-week adjournment in February to consider whether it would intervene in the case. Freedom of the press Clermont said in the post: 'This decision underscores the robustness of Hong Kong's legal system, which empowers individuals to hold foreign corporations accountable for violating rights guaranteed under Article 27 of the Basic Law, including freedom of the press, freedom of association and trade union participation.' 'This case is a testament to Hong Kong's commitment to upholding labor rights and ensuring a stable, equitable society under the rule of law and free from foreign interference.' Under Hong Kong's Employment Ordinance, an employer who prevents an employee from undertaking trade union membership and activities, and who terminates the employment of an employee for exercising those rights, is liable to conviction. A spokesperson for the Wall Street Journal's parent company, Dow Jones, told HKFP last year that it could confirm that personnel changes were made, but would not comment on specific individuals. The spokesperson added that the paper 'has been and continues to be a fierce and vocal advocate for press freedom in Hong Kong and around the world.'
HKFP
14-06-2025
- Politics
- HKFP
Freelance journalist Selina Cheng re-elected chair of Hong Kong's embattled Journalists Association
The Hong Kong Journalists Association (HKJA) voted in a new Executive Committee on Saturday, with freelance journalist Selina Cheng re-elected as chair unopposed. Cheng was elected at the association's Annual General Meeting in Jordan, having secured 89 votes, with no member voting against or abstaining. The new 2025-26 Executive Committee consists of four members. According to the committee's annual report to members, over the past year, the union has supported members facing tax audits, conducted a press freedom survey, held fundraisers, social events and workshops and launched an investigation into the harassment of journalists. The Court of Appeal also ruled in the union's favour in a case involving a satirical show axed by government-funded broadcaster RTHK. As of June 13, the association had 323 members in total, compared to 338 a year ago. It gained 57 new members since 2024, whilst 87 memberships expired, according to its report to members. Embattled association The city's largest press union has met with increasing pressure from authorities over recent years. During the protests and unrest in 2019, pro-Beijing figures accused it of smearing the police, allowing 'fake journalists' to join, and protecting protesters – accusations it denied. Last year, security chief Chris In February, Tang claimed the HKJA was 'unrepresentative.' Cheng has overseen another tumultuous year for the embattled 57-year-old union. Last month, it emerged that Hong Kong's independent news sector, including companies, staff and family members, were facing simultaneous tax audits and backdated demands, according to the HKJA which has also been facing an audit. The situation reflected a worsening press freedom environment, they said, whilst the government said cases were handled without bias. In February, the HKJA said its venue booking for their annual fundraising gala was cancelled by Eaton HK hotel, with no reason given. It came after the Regal Hongkong Hotel in Causeway Bay axed the union's venue booking, citing 'water leakage causing unstable power supply.' The union went on to enjoy its ' best fundraising results ' in years, with the event going ahead online. Cheng herself appeared in court in February, accusing her ex-employer, The Wall Street Journal, of breaching the city's laws protecting employees' right to join union activities by firing her after she first took on the union's leadership role in 2024. Press freedom Hong Kong has plummeted in international press freedom indices since the onset of the 2020 and 2024 security laws. Watchdogs cite the arrest and jailing of journalists, raids on newsrooms and the closure of around 10 media outlets including Apple Daily, Stand News and Citizen News. Over 1,000 journalists have lost their jobs, whilst many have emigrated. Meanwhile, the city's government-funded broadcaster RTHK has adopted new editorial guidelines, purged its archives and axed news and satirical shows. In 2022, Chief Executive John Lee said press freedom was 'in the pocket' of Hongkongers but 'nobody is above the law.' Although he has told the press to ' tell a good Hong Kong story,' government departments have been reluctant to respond to story pitches.
South China Morning Post
27-05-2025
- Politics
- South China Morning Post
‘No special privileges for tax evasion,' John Lee tells Hongkongers
Hong Kong's leader has slammed organisations that claim to be professional yet defend members under tax investigations, warning that such attempts to pressure authorities will only 'expose their ugly nature'. Chief Executive John Lee Ka-chiu also said that authorities would pursue legal responsibility in accordance with the law, as he responded to a question on whether the government's recent tax reviews on members of Hong Kong Journalists Association were targeting independent media. Last week, the city's largest journalism group revealed that at least 20 members were asked to prepay about HK$1 million (US$127,609) following a tax review by the Inland Revenue Department, arguing the move was supported by insufficient evidence and had 'inevitably' placed extra stress on the reporters and media organisations. Lee said the department had a legal obligation to conduct tax audits and assessments. He added no one had the right to evade taxes or avoid assessments, while noting that evasion could result in a three-year jail sentence. Hong Kong Journalists Association chairwoman Selina Cheng. The group has said that at least 20 members have undergone tax reassessments. Photo: Edmond So 'Regardless of profession – whether civil servants, professionals or non-professionals, journalists or any other occupation – no one holds a special privilege to break the law through tax evasion,' Lee told reporters before meeting with the top decision-making body Executive Council.
HKFP
22-05-2025
- Business
- HKFP
Hong Kong press union says gov't made ‘mistakes,' ‘unreasonable claims' in independent news sector tax audits
The Hong Kong Journalists Association (HKJA) has said that the government's tax authority made errors and 'strange, unreasonable claims' when auditing independent media outlets and issuing additional demands. 'We've noticed that the Inland Revenue Department (IRD) made numerous mistakes while reviewing the tax [records of media outlets and reporters],' Selina Cheng, the chairperson of the union, said in Cantonese on Wednesday. facing simultaneous tax audits and backdated demands. At least six independent outlets and 20 individuals, including the heads of media outlets and their spouses, have received notification of audits and additional tax demands since November 2023, Cheng said. The outlets include InMedia,The Witness, ReNews, Boomhead, HKFP, and one that did not wish to be named. The financial years being probed span the full six or seven years allowable under the IRD's remit. Those inspected usually receive a notice of assessment of additional tax first, the press union chief said. Then, they are requested to pay a provisional tax demand before the investigation into any alleged underpayment is complete. Cheng said an individual who did not run any companies received a notice from the IRD with a company Business Registration (BR) number, and was asked to pay tax for the firm. The union searched the number and found that it did not exist. 'That journalist was asked to pay profits tax even though they didn't conduct any business,' she alleged. Another media outlet had its tax audited for a financial year before the company was even established, Cheng added. 'We noted that the IRD had some kind of strange, or unreasonable claims with details that we noted that didn't make any sense,' Cheng has said. In some other cases, Cheng said the IRD had calculated individuals' taxable income as double the actual amount. Cheng told HKFP on Thursday that the union was undecided as to whether they would approach the government watchdog, the Ombudsman, about the apparent errors. In response to HKFP about the journalist group's claims, the IRD said on Wednesday that the authority 'has established procedures' to review the information provided by taxpayers and to verify the amount of tax payable. 'If there is any information showing that any person may have breached the provisions of the Inland Revenue Ordinance (IRO), the IRD will follow up the case in accordance with the IRO,' the IRD said. Statement: HKFP, which was 'randomly selected' for an audit in 2024, has always met its tax obligations, paid demands immediately, and ensured meticulous record-keeping. Donor data was withheld in paper submissions to Inland Revenue, with all 'hold' demands reduced to HK$0.… — Hong Kong Free Press HKFP (@hkfp) May 21, 2025 It added that the 'industry or background of a taxpayer has no bearing on such reviews.' In a statement on Wednesday, HKFP said it has been cooperating fully with its tax audit, having 'always met its tax obligations, paid IRD demands immediately, and ensured meticulous record-keeping since our 2015 inception.' The HKJA itself has also faced a probe. In January, it said the IRD demanded HK$400,000 from the group after reviewing its 2017-2018 accounts. 'Additional time and energy' According to the HKJA, the total amount demanded from the six media outlets and other related organisations was around HK$700,000, while the total amount demanded from individuals was around HK$1 million. Companies and individuals have a month to raise objections, according to IRD procedures. Cheng said all the media outlets, individuals and the HKJA raised objections and most of them saw the requested payment of provisional tax suspended. However, being subject to such audits burdens the independent media sector, which often has limited resources and manpower. 'They have to budget for additional audits, additional legal fees, additional time and energy seeking professional advice,' she said. Reports of government scrutiny come as the state of press freedom in Hong Kong remains in the spotlight. In the annual Reporters Without Borders (RSF) Press Freedom Index, released last month, Hong Kong tumbled five spots to enter the 'red zone' – meaning a 'very serious' situation – for the first time, alongside China. Since the Beijing-imposed national security law came into effect in 2020, dozens of civil society groups have shuttered. Two of Hong Kong's biggest independent media outlets – Apple Daily and Stand News – also saw their offices raided and their top staff arrested. Apple Daily's founder Jimmy Lai, who has been remanded since December 2020, has been charged with two counts of conspiring to collude with foreign forces under the Beijing-imposed national security law, and a third count of conspiring to publish seditious materials under colonial-era legislation.
The Guardian
22-05-2025
- Business
- The Guardian
Hong Kong authorities trying to disrupt independent press with ‘strange' tax audits
Hong Kong authorities have targeted journalists and media outlets with what are supposed to be 'random' tax audits, in a move the industry union says adds pressure to waning press freedoms. The head of the Hong Kong Journalists Association, Selina Cheng, detailed what she said were 'strange' and 'unreasonable' accusations by Hong Kong's inland revenue department. Requests or audits were made against the association, at least eight independent media outlets, and at least 20 journalists and their family members, including Cheng and her parents, she said at a press conference on Wednesday. Cheng said the tax department had told one journalist that they had to pay a profit tax for a company which they did not run, and had cited a registration number which did not exist. Another company was told it was being audited for profits made during the year before it was even founded. One journalist had their income 'assessed' as double the amount they had actually earned, and was issued a demand for prepayment of tax on the 'underreported' income. 'Does the average news worker have the resources to hire an auditor to handle it?' Cheng asked. 'We are concerned that tax investigations will put a financial and mental strain on media workers, disrupt our reporting and prevent us from focusing our journalistic work.' Among the media outlets listed as targets were InMedia HK and the English-language Hong Kong Free Press (HKFP), and the latter's founder, Tom Grundy. HKFP said it had been 'randomly selected' for a seven-year audit in 2024, and that the IRD had twice requested 'hold sums' which were later reduced to zero after the outlet objected. 'HKFP has always met its tax obligations, paid IRD demands immediately, and ensured meticulous record-keeping since our 2015 inception,' it said. 'The delays involved, and wide scope of these inspections, raise questions about the burden on the taxpayer and tax office resources … Recent scrutiny has diverted resources, manpower and funds away from journalism as we face a fourth year of financial deficit.' In a statement on X, Grundy said the outlet had 'expected this kind of thing years ago', and had been 'obsessive' in its record keeping and financial transparency. 'I'm having to act as a one-man compliance department instead of a journalist,' he said about the 15 month-long process so far. Citing IRD figures, Grundy said the chance of being 'randomly' selected for an IRD audit was about 0.123%. 'The probability drops much further when considering almost all independent media outlets were coincidentally, simultaneously selected.' Aleksandra Bielakowska, advocacy manager at Reporters Without Border Asia-Pacific, said Hong Kong and Chinese authorities were doing everything in their power 'to close remaining media outlets … and make sure there's only one narrative coming from the Chinese Communist party. If they can't put people in jail they'll pressure them and their families to dissuade – or even prevent – them from reporting on the ground', she told the Guardian. Hong Kong's media has come under increasing pressure and persecution since the government crackdown on the pro-democracy movement ushered in a Beijing-designed national security law. Several outlets have been forced to close or relocate, including Apple Daily, whose founder, Jimmy Lai, is on trial for alleged offences under the NSL, and Stand News, whose two former editors were jailed for sedition last year. The Stand News sentencing came just weeks after the HKJA revealed a campaign of 'systemic and organised' harassment of journalists and outlets, many of which Cheng said on Wednesday were also among those questioned by the tax authorities. The harassment included death threats and threatening and defamatory complaint letters being sent to reporters' families and their employers, landlords and neighbours. In the latest Reporters Without Borders' World Press Freedom Index, Hong Kong ranked 140 out of 180 countries, down from 80 in 2021 The IRD has been contacted for comment. In a statement to the Associated Press, it said it did not comment on individual cases but 'the industry or background of a taxpayer has no bearing on such reviews'. Additional research by Lillian Yang
