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.”
See also: Hong Kong’s independent news sector faces tax audits and demands
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.
See also: Statement: HKFP always pays tax in full and on time, welcomes conclusion of audit this year
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.”
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
Hong Kong has plummeted in international press freedom indices since the onset of the 2020 and 2024 security laws. Watchdogs cite the arrest and jailing of journalists, raids on newsrooms and the closure of around 10 media outlets including Apple Daily, Stand News and Citizen News. Over 1,000 journalists have lost their jobs, whilst many have emigrated. Meanwhile, the city’s government-funded broadcaster RTHK has adopted new editorial guidelines, purged its archives and axed news and satirical shows.
See also: Explainer: Hong Kong’s press freedom under the national security law
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.
