The Hong Kong Journalists Association (HKJA) has hit out the government of weaponising the tax code to intimidate the city’s embattled media sector. At a press conference held on Tuesday (4 May), union leaders revealed that the tax department has issued a string of aggressive demands, including a recent HK$730,000 (£75,000) bill that the association was given just 48 hours to pay.
The union’s chairperson, Selina Cheng, described the recent wave of audits as a “gross misallocation of public resources” designed to inflict financial and psychological strain on journalists. This latest demand follows an earlier HK$300,000 tax bill issued to the group at the start of the year, signaling what the HKJA describes as a systematic campaign against the press.
Cleared of Wrongdoing but Saddled with Costs
The HKJA highlighted several instances where exhaustive investigations into news outlets resulted in virtually no evidence of tax evasion, yet still caused significant financial harm. For example, the independent outlet InMedia was cleared of any wrongdoing after a two-year probe that found it owed exactly zero dollars in back taxes. Despite this total exoneration, the outlet was forced to swallow HK$40,000 in accounting and administration fees simply to prove its innocence.
A similar pattern emerged with Hong Kong Free Press (HKFP). Tax inspectors found a minor discrepancy of just HK$3,020 in a single year. However, the authorities used that tiny sum to “extrapolate” alleged arrears across a six-year period, eventually slapping the non-profit with a HK$58,000 bill. The HKJA pointed out that the penalty rate applied was 135%, significantly higher than the standard maximum of 75%.
Individual Journalists in the Crosshairs
The audit campaign has also moved beyond organisations to target individual freelancers. One small media owner reported that their tax demands ballooned from a negligible HK$500 to over HK$30,000 a year, despite no significant increase in their earnings.
In another case, an independent journalist who has been unable to maintain a bank account due to the city’s restrictive financial environment was ordered to pay HK$220,000. Because the tax department refuses to accept cash payments and the journalist has no access to a checking account, he now faces a legal and financial stalemate.
“Statistically Impossible” Randomness
Government officials have consistently maintained that these audits are part of a routine, “random” selection process. Ms. Cheng dismissed this explanation as statistically impossible, noting that in one small newsroom of seven people, three staff members were simultaneously selected for audit. She joked grimly that such odds would be more akin to winning the lottery ten times in a row than a coincidence.
Data cited by the HKJA further underscored the discrepancy in the government’s approach. While a typical Inland Revenue audit usually recovers around HK$1.6 million, the four completed cases involving media groups have averaged only HK$80,000. Ms. Cheng argued that the administrative cost of these probes likely exceeds the money recovered, suggesting the government is “letting the big fish go” while spending public funds to harass the press.
The Commissioner of Inland Revenue, Chan Sze-wai, declined to comment on specific cases, citing taxpayer confidentiality. He maintained that the department operates without regard to a taxpayer’s profession or political background. The audits come amid a broader crackdown on civil society in Hong Kong, which has seen several major pro-democracy outlets forced to close since 2021.
Photo: HKJA