Hong Kong's independent news sector – inc. companies, staff and family members – face tax audits and demands

HKFP

21-05-2025

Hong Kong's independent news sector, including companies, staff and family members, are facing simultaneous tax audits and backdated demands, the Hong Kong Journalists Association (HKJA) said on Wednesday. The situation reflected a worsening press freedom environment, they said.
Head of the HKJA Selina Cheng said at a press conference that at least six news outlets – including InMedia, The Witness, ReNews, Boomhead, Hong Kong Free Press and an outlet that declined to be named – had been receiving government tax demands since November 2023 as part of Inland Revenue Department (IRD) inspections.
Meanwhile, a total of 20 individuals linked to the independent media industry are also facing similar probes and tax demands, Cheng said: 'Journalists in Hong Kong do not have a very high income. Other than having to pay these claims of taxes, they also need to spend money, time and energy to prove in reverse that they were innocent.'
According to the press union, 12 of them are heads, board members or shareholders of the news outlets concerned. Also under inspection are two freelance journalists, two spouses of news outlet heads, an employee of a media outlet, and both parents of the HKJA chief.
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.
'Usually, taxpayers will be required to pay a holding amount of tax for the coming year,' Cheng said. 'Usually, that kind of tax assessment is based on current income, but we're highlighting cases against media outlets and reporters who already paid their taxes in full six or seven years ago – and now the Hong Kong tax authority is coming to ask them to pay [an] even higher amount based on assessments that are made without evidence.'
'The IRD's audit of media and reporters was not based on sufficient evidence – or reasonable grounds, we believe – when they made such assessment of income shortfall, or requirement to pay their tax even before the audit is complete.'
'We think if the IRD thinks that there were taxpayers who neglected to pay their taxes in full, they should give sufficient and correct evidence before making these claims.'
The total amount demanded from six media outlets and other organisations involves HK$700,000 so far, whilst the total amount demanded from individuals is around HK$1 million, according to the HKJA.
Cheng faces an IRD probe into her salary tax dating back to 2017-18 when she was a reporter with local outlet HK01. The IRD also inspected Cheng's parents' salary taxes, profit taxes and rates.
'I was earning a monthly salary of HK$18,000 at that time and IRD assessed my taxable income [to be] HK$231,000. But recently, IRD said my taxable income was HK$631,000, and requested to tax me for the 'underreported' HK$400,000,' Cheng said, adding that the IRD did not provide evidence as to why it suspected there had been more taxable income.
According to IRD procedures, companies and individuals can raise objections against assessments within a month of any notice. Cheng said all the media outlets, individuals and the HKJA raised objections and most of them saw the requested payment of provisional tax suspended.
In a response to HKFP's enquiries on Wednesday, an IRD spokesperson said that it had established procedures to verify taxpayer information and follows the Inland Revenue Ordinance: '[T]he IRD will follow up the case in accordance with the IRO. The industry or background of a taxpayer has no bearing on such reviews,' it said, adding that it cannot comment on individual cases.
It did not respond as to how companies were 'randomly selected' for audits. HKFP has submitted a Code on Access to Information request to better understand the procedure.
'Significant strain'
When asked by an HKFP reporter about the impact of IRD inspection on press freedom, Cheng said she believed the audits hampered media outlets' daily operations and their sustainability.
'They have to budget for additional audits, additional legal fees, additional time and energy seeking professional advice,' she said. 'I think, to small organisations and to individuals, that's a significant strain.'
'If a number of media outlets or dramas are coming under financial duress created by unwarranted audits, then it does affect our ability to work continually,' Cheng added.
HKFP 'always met its tax obligations'
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.'
It added that it had obfuscated donors' personal data in paper submissions to the IRD and that IRD demands made ahead of the probe were reduced to HK$0 upon HKFP's appeal.
The statement said that recent government scrutiny had diverted resources, manpower and funds away from journalism amid a years-long financial deficit: 'The delays involved, and wide scope of these inspections, raise questions about the burden on the taxpayer and tax office resources.'
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.… pic.twitter.com/3v2SPlKfop
— Hong Kong Free Press HKFP (@hkfp) May 21, 2025
'HKFP nevertheless understands our case will shortly be concluded, just as all recent cases involving the Companies Registry, the Food and Environmental Hygiene Department, and the Agriculture, Fisheries and Conservation Department over the past year were closed.'
Press freedom in Hong Kong
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.
Last year, the HKJA said there was a 'systematic and organised attack' upon the city's media sector, after receiving reports from journalists from at least 13 media outlets saying they or their family members had received anonymous harassment letters.
Cheng said the HKJA was not aware of how those behind the campaign obtained journalists' personal information, adding it was concerned about apparent and potentially unlawful leaks from the government or private databases.
During the press conference on Wednesday, Cheng said the media outlets inspected by IRD partly overlapped with those facing harassment last year.