Tax Audits Targeting Journalists in Hong Kong
Authorities in Hong Kong are reportedly conducting what many believe to be arbitrary tax audits on journalists and media organizations.
Serena Chen, the leader of the Hong Kong Journalists Association, described the accusations from the inland revenue department as “strange” and “irrational.” She stated that requests for audits have been sent to her association, as well as to at least eight independent media outlets and their families, affecting around 20 journalists, including Chen and her parents. This information was shared during a press conference on Wednesday.
Chen recounted an instance where a journalist was told to pay profit tax for a business he didn’t actually operate, complete with a non-existent registration number cited. Another case involved a company being audited for profits from a year prior to its founding. Additionally, one journalist was unexpectedly told to pay taxes for income that was inaccurately reported as being higher than it actually was.
“Does the average newsworker have the resources to hire an auditor?” Chen questioned. “We worry that these audits will place significant financial and emotional stress on media professionals, disrupting their work and hindering journalistic efforts.”
Among the outlets affected were Inmedia HK and the English-language Hong Kong Free Press (HKFP), with Tom Grundy, the founder of HKFP, commenting on the situation.
HKFP noted it was “randomly selected” for an audit covering seven years in 2024, claiming that the IRD twice requested to “retain” information before dropping the request entirely after the outlet contested it.
According to HKFP, they have consistently met tax obligations, responded promptly to IRD inquiries, and have maintained rigorous bookkeeping since their establishment in 2015.
Grundy highlighted how the delays and extensive range of these audits pose questions about taxpayer burdens and the use of tax office resources. He mentioned that the ongoing scrutiny has diverted valuable resources away from journalism, especially as they deal with a fourth consecutive year of financial losses.
In a post on X, Grundy remarked that they anticipated such actions years prior and emphasized their commitment to meticulous record-keeping and financial clarity.
“I find myself acting as a compliance officer rather than a journalist,” he shared, referencing the time-consuming 15-month process.
Grundy also pointed out that the odds of being selected for an IRD audit are approximately 0.123%. “If you think about the fact that nearly all independent media were chosen at the same time, the chances are even slimmer,” he noted.
Alexandra Vierakovska, an advocacy manager with Reporters Without Borders, confirmed that Hong Kong and Chinese authorities are systematically shutting down remaining media outlets, resulting in a narrative that solely follows the Chinese Communist Party agenda.
Since the crackdown on the democratic movement, media outlets have faced escalating pressure. Some, like Apple Daily, have shut down or relocated, while its founder, Jimmy Lai, faces trial for alleged offenses under the national security law. Stand News also experienced turmoil, with two former editors imprisoned for incitement last year.
The recent ruling against Stand News followed the HKJA’s announcement of a “systematic and organized” harassment initiative targeting journalists and media entities.
This harassment has included threats of violence and defamatory complaints sent to reporters’ families, employers, landlords, and neighbors.
According to the latest World Press Freedom Index from Reporters Without Borders, Hong Kong now ranks 140th out of 180 nations, a significant decline from 80th place in 2021.
The IRD was approached for comments. While they refrained from discussing specific cases, they stated that “the taxpayer’s industry or background is not pertinent to such reviews.”
