Latest news with #SelinaCheng
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
Straits Times
22-05-2025
- Business
- Straits Times
‘Unreasonable' tax audit of some Hong Kong media: Press union
Ms Selina Cheng, the HKJA's chair, said the association, herself and her parents were also impacted. PHOTO: AFP HONG KONG - At least five local media outlets in Hong Kong and multiple journalists had their taxes from years ago audited on 'unreasonable grounds', a press association said May 21. Hong Kong's press freedom ranking has plummeted since Beijing cracked down on dissent after huge, sometimes violent pro-democracy protests in 2019. The Hong Kong tax authorities alleged that a group of online outlets, reporters and some of their family members had failed to report their income from 2017 to 2019 in full. Backdated demands have been issued as a result, according to the Hong Kong Journalists Association (HKJA). The association told reporters it believed the audits 'were not based on sufficient evidence or reasonable grounds.' The impacted media outlets listed by the HKJA include Hong Kong Free Press, Inmedia and The Witness, a news site focused on covering court cases, as well as two others. HKJA said the tax department had claimed back money for 'bizarre' reasons, including calculating non-existent income from before one of the outlets was founded. Ms Selina Cheng, the HKJA's chair and a former Wall Street Journal reporter, said the association, herself and her parents were also impacted. Hong Kong's Inland Revenue Department (IRD) said it followed the legal process and that its actions were not aimed at specific industries, according to local media. IRD added that it would not comment on 'individual cases'. Hong Kong journalists rated the city's press freedom lower than ever in an annual survey in 2024, citing fears around sweeping national security laws. More than 90 per cent of journalists surveyed said the city's press freedom was 'significantly' impacted by a domestic security law enacted in March 2024 that punishes crimes like espionage and foreign interference. Colloquially known as Article 23, it was the second such law enacted for the financial hub, following one imposed by Beijing in 2020 after the pro-democracy protests. China's foreign ministry said that Hong Kong's security laws 'target a very small number of individuals who severely endanger national security, not law-abiding media reporters'. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
New Straits Times
22-05-2025
- Business
- New Straits Times
"Unreasonable" tax audit of some Hong Kong media
HONG KONG: At least five local media outlets in Hong Kong and multiple journalists had their taxes from years ago audited on "unreasonable grounds", a press association said Wednesday. Hong Kong's press freedom ranking has plummeted since Beijing cracked down on dissent after huge, sometimes violent pro-democracy protests in 2019. The Hong Kong tax authorities alleged that a group of online outlets, reporters and some of their family members had failed to report their income from 2017 to 2019 in full. Backdated demands have been issued as a result, according to the Hong Kong Journalists Association (HKJA). The association told reporters it believed the audits "were not based on sufficient evidence or reasonable grounds." The impacted media outlets listed by the HKJA include Hong Kong Free Press, Inmedia and The Witness, a news site focused on covering court cases, as well as two others. HKJA said the tax department had claimed back money for "bizarre" reasons, including calculating non-existent income from before one of the outlets was founded. Selina Cheng, the HKJA's chair and a former Wall Street Journal reporter, said the association, herself and her parents were also impacted. Hong Kong's Inland Revenue Department (IRD) said it followed the legal process and that its actions were not aimed at specific industries, according to local media. IRD added that it would not comment on "individual cases." Hong Kong journalists rated the city's press freedom lower than ever in an annual survey last year, citing fears around sweeping national security laws. More than 90 percent of journalists surveyed said the city's press freedom was "significantly" impacted by a domestic security law enacted in March 2024 that punishes crimes like espionage and foreign interference. Colloquially known as Article 23, it was the second such law enacted for the financial hub, following one imposed by Beijing in 2020 after the pro-democracy protests. China's foreign ministry said that Hong Kong's security laws "target a very small number of individuals who severely endanger national security, not law-abiding media reporters."
