Latest news with #HKJA
Epoch Times
28-05-2025
- Business
- Epoch Times
Journalist Group Criticizes Hong Kong's Tax Investigation Into Media Outlets
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. Related Stories 12/25/2024 8/29/2024 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.
HKFP
27-05-2025
- Business
- HKFP
Hong Kong leader's comments prove taxpayers ‘penalised' before audit results, press union says
The Hong Kong Journalists' Association (HKJA) has criticised the city's top leader for saying that journalists 'have no privilege to evade taxes,' following the press union's accusation of 'unreasonable' tax audits targeting independent media outlets. 'Chief Executive John Lee's remarks today perfectly prove the Hong Kong Journalists Association's point that Hong Kong taxpayers are penalized and judged before the IRD [Internal Revenue Department] even concluded its audit findings,' the HKJA chairperson Selina Cheng said in a statement on Tuesday. 'What the HKJA questions is the procedural legitimacy of the audits, but Lee is quick to label those facing audits as 'tax evaders' and 'lawbreakers.'' Selina was responding to Lee's comments earlier on Tuesday morning, when reporters asked him about the HKJA's allegations that six independent media outlets in the city have been facing tax audits from the IRD since late 2023. The press union also said last week that the IRD made errors and 'strange, unreasonable claims' in issuing tax assessments and demands. 'Journalists or any other profession have no privilege to evade taxes,' Lee replied. He also said a 'real professional group' should improve the profession it belongs to instead of pressuring the government. 'Tolerating members who break the law and evade taxes while pressuring the government will only expose the group's own maliciousness,' the chief executive said. The six outlets facing IRD's audits include HKFP, InMedia, The Witness, ReNews, Boomhead, and one that did not wish to be named, according to the HKJA. In a statement, HKFP said it has been cooperating fully with the IRD's tax audit, adding that it has 'always met its tax obligations, paid IRD demands immediately, and ensured meticulous record-keeping' since it was established in 2015. 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 The HKJA also said 20 individuals, including heads of media outlets and their spouses, are also subject to the IRD's audits and backdated tax demands. The press union itself also faces the IRD's scrutiny. that the IRD would 'definitely not' target specific industries. According to the annual Reporters Without Borders (RSF) Press Freedom Index, released in early May, Hong Kong fell five spots to 140th out of 180 countries and territories. The former British colony, once home to 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.
HKFP
27-05-2025
- Business
- HKFP
Journalists ‘have no privilege to evade taxes,' Hong Kong leader says after press union alleges ‘unreasonable audits'
Journalists 'have no privilege to evade taxes,' Hong Kong leader John Lee has said, brushing off a press union's accusation that independent media outlets in the city are facing 'unreasonable' tax audits. No one is exempt from paying their taxes on time and in full, Lee said at a weekly press conference on Tuesday, adding that the government is entitled to launch tax investigations against any individuals or professions. 'No one has the privilege to break the law, no one has the privilege to evade taxes, and no one has the privilege of not having their taxes assessed,' he said in Cantonese. 'Journalists or any other profession have no privilege to evade taxes.' He also said that a 'real professional group' should improve the profession it belongs to instead of pressuring the government. 'Tolerating members who break the law and evade taxes while pressuring the government will only expose the group's own maliciousness,' Lee said. six independent media outlets in the city have been facing tax audits from the Inland Revenue Department (IRD) since late 2023. The IRD made errors and 'strange, unreasonable claims' in issuing tax assessments and demands, the press union said. The outlets include HKFP, InMedia, The Witness, ReNews, Boomhead, and one that did not wish to be named. In a statement, HKFP said it has been cooperating fully with the IRD's tax audit, adding that it has 'always met its tax obligations, paid IRD demands immediately, and ensured meticulous record-keeping' since it was established in 2015. 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 According to the HKJA, 20 individuals, including heads of media outlets and their spouses, are also subject to the IRD's audits and backdated tax demands. The HKJA also faces the IRD's scrutiny. Selina Cheng, head of the HKJA, also said during the Wednesday press conference that the mistakes of the IRD included demanding a journalist to pay profits tax with a non-existent Business Registration number, and auditing backdated tax filings from before one media outlet was even established. Cheng also said the IRD re-examined her 2017 tax filing and overassessed her taxable income by about HK$400,000. Commissioner of Inland Revenue Benjamin Chan said on Saturday that the IRD would 'definitely not' target specific industries. According to the annual Reporters Without Borders (RSF) Press Freedom Index, released in early May, Hong Kong fell five spots to 140th out of 180 countries and territories. The former British colony, once home to 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. 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' on 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 last week that the media outlets inspected by the IRD partly overlapped with those that faced harassment last year.
HKFP
26-05-2025
- Business
- HKFP
Tax chief says no specific groups targeted, as independent online news sector face simultaneous audits
Hong Kong's tax chief has said that the Inland Revenue Department (IRD) would 'definitely not' target specific industries, after it emerged that the city's independent online media outlets have been under audit since 2023. Commissioner of Inland Revenue Benjamin Chan said on Saturday that '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,' RTHK reported. In 2023–24, 1,802 tax audits were 'processed' by the IRD, according to its annual report. As of 2024, there were 1,460,494 companies registered locally, the government said. '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,' Chan said. He called the audit process 'transparent, fair and open.' The Hong Kong Journalists Association (HKJA) said on Wednesday that the independent news sector – including companies, staff and family members of the union chief – was facing simultaneous tax audits. HKJA head Selina Cheng said 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 additional tax demands since November 2023 as part of IRD inspections. Meanwhile, a total of 20 individuals linked to the independent media industry are also facing similar probes. Thirteen of them are heads, directors, shareholders, or former heads of the news outlets concerned. Also under inspection are two freelance journalists, two spouses of news outlet heads, an employee of an outlet, and both parents of the HKJA chief. 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. In a statement last week, Hong Kong Free Press 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.' 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 said that identifying donor information was withheld in its paper submissions to the IRD. The HKJA said the IRD had made errors and 'strange, unreasonable claims ' during the audits. The situation was condemned by press freedom groups. Press freedom concerns 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
24-05-2025
- Business
- South China Morning Post
Hong Kong tax chief dismisses claims reporters singled out for audits
Hong Kong's tax chief has dismissed concerns that at least 20 reporters and their family members are being selectively audited, saying assessment procedures are applied uniformly and do not target specific industries or individuals based on their background. Earlier this week, the Hong Kong Journalists Association (HKJA) raised concerns about the number of reporters and their family members being subject to what they called unreasonable tax reviews for allegedly under-reporting their income. Commissioner of Inland Revenue Benjamin Chan Sze-wai brushed aside the accusations on Saturday, saying: 'Some taxpayers have asked whether the Inland Revenue Department conducts tax audits based on special industries or specific backgrounds. 'I want to emphasise that we absolutely do not do this, nor do we have this practice. Our system treats all taxpayers consistently; all taxpayers have the chance to be invited for a tax audit.' On Wednesday, the HKJA said that at least 20 journalists had been reviewed by the department for salary and profits taxes, and were asked to pay about HK$1 million (US$127,700). After applying to the department for postponement of payment, they were still required to pay about HK$90,000.
