Tax audits of Hong Kong independent news outlets are ‘intimidation tactics,' int'l media watchdogs say
Hong Kong authorities' tax audits of independent news outlets are 'intimidation tactics,' two international media watchdogs have said, after a press association revealed that independent media outlets were accused of underpaying tax.
The Hong Kong Journalists Association (HKJA) said on Wednesday that six media outlets – InMedia,The Witness, ReNews, Boomhead, HKFP, and one that did not wish to be named – have been subjected to the Inland Revenue Department (IRD)'s inspections starting in late 2023.
Besides the outlets, the heads, directors and shareholders of the outlets, and two of their spouses, also saw their taxes audited.
The Hong Kong Journalists Association 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.
Reporters Without Borders (RSF) on Wednesday condemned the 'intimidation tactic to dissuade independent journalists from reporting.'
Aleksandra Bielakowska, advocacy manager of the RSF, said on Wednesday that the tax inspections followed 'media shutdowns' and the 'jailing, harassing and surveilling [of] journalists.'
'Most independent media have been facing this scrutiny. What shocks even more is that also journalists and their families are faced with 'random' tax auditing,' Bielakowska wrote on social media platform LinkedIn.
Beh Lih Yi, the Asia programme coordinator of the Committee to Protect Journalists, told HKFP that the IRD's move 'preposterous' and a 'weaponisation of financial and tax measures' targeting journalists.
She added that Hong Kong was 'taking a page out of the playbook of authoritarian regimes elsewhere that are using similar intimidation tactics.'
'Targeting journalists with tax audits without sufficient evidence not only rings alarm bells for press freedom, but also raises concerns more broadly about Hong Kong as a safe and reliable location to do business,' Beh 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.… pic.twitter.com/3v2SPlKfop
— Hong Kong Free Press HKFP (@hkfp) May 21, 2025
An IRD spokesperson told HKFP on Wednesday: '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.'
Impact on press freedom
Selina Cheng, chairperson of the HKJA, said in the press conference on Wednesday that the tax audits had a negative impact on press freedom as it hampered the daily operations of news outlets.
'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.'
She added that the IRD also made errors and 'strange, unreasonable claims' in their auditing. One media outlet had its tax audited for a financial year before it was even established, Cheng said.
When asked by HKFP, the IRD did not respond directly to the HKJA's allegations of mistakes.
In the annual Reporters Without Borders (RSF) Press Freedom Index, released last month, Hong Kong fell five spots to 140th out of 180 territories.
The former British colony, once with a freewheeling press, entered the 'red zone' – meaning a 'very serious' situation for journalism – for the first time in RSF's index. China ranked 178th out of 180.
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.
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.
During the press conference on Wednesday, Cheng said the media outlets that were inspected by the IRD partly overlapped with those that faced harassment last year.
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