Hong Kong FP Resolves Tax Audit with Payment

Hong Kong Free Press (HKFP) has recently paid HK$57,692 to settle a nearly two-year-long tax audit. According to the audit, there was only an alleged tax shortfall of HK$3,020 found during an investigation covering their accounts from 2021 to 2022. This shortfall was estimated to be about 0.78% of that year’s income. Over the course of the investigation, HKFP asserts that it has fully and timely paid a total of HK$953,886 in taxes.

The decision to settle the case stemmed from a long and costly audit process—spanning 20 months—which diverted resources from journalism and likely cost more in taxpayer money than the small amount in dispute. Faced with ongoing losses, HKFP is now in its fourth consecutive year of deficits, with current losses exceeding HK$1.4 million as of 2025. While they’ve made significant cuts, the organization is seeking support from readers to sustain independent journalism through 2026.

To assure supporters, HKFP noted that, upon legal advice, donor identities have been omitted from the documents submitted to the Inland Revenue Department (IRD) to safeguard their privacy. The organization expresses gratitude for the continued support from its members.

Additionally, HKFP successfully contested the payment of a “prepaid” withholding amount, arguing there was no evidence of any wrongdoing on their part.

In response, the tax office indicated that HKFP was “randomly selected” for this audit. It’s noteworthy that multiple independent media organizations have faced similar scrutiny alongside others in civil society.

Over the past two years, HKFP and its founders have endured intense scrutiny and complaints from various government branches, though all issues have been resolved. The organization has reported two instances of false allegations to the police.