HKFP has paid the tax office HK$57,692 in order to close a tax probe that was ongoing for nearly two years. With our full cooperation, auditors were only able to uncover an alleged tax shortfall worth HK$3,020 in 2021-22 amid a seven-year investigation into our accounts. The discrepancy was valued at 0.78 per cent of our income that year. HKFP paid HK$953,886 in tax throughout the period under review and maintains that it always paid in full and on time. Click here for the full story.
HKFP invested countless hours and dwindling funds into tackling the probe, calculating that it was more financially prudent to settle than continue fighting. The 20-month audit diverted resources from journalism, and likely cost the taxpayer much more than the pocket change it generated.
HKFP now faces a fourth year of deficit with losses already exceeding HK$1.4 million in 2025. We have made cutbacks, but appeal to readers to help protect our independent newsroom as we enter 2026.
Following advice from legal experts, supporters can be assured that donor names were removed from paperwork submitted to Inland Revenue (IRD) in order to protect their privacy. We thank our members for their ongoing support.
HKFP also successfully declined to pay advance “hold” sums, arguing there was no evidence of wrongdoing.
The tax office said HKFP was “randomly selected” for an audit, though much of the independent media sector was simultaneously investigated. Other sections of civil society also continue to face IRD probes. HKFP founder Tom Grundy was also subject to an audit – he chose to settle to avoid the costs of continuing the probe, paying a total of HK$20,956 after penalties were applied last month.
Full response from Inland Revenue – click to view
To protect tax revenue, the Inland Revenue Department (IRD) has established procedures to review the information provided by taxpayers and to verify the amount of tax payable. Such reviews, including audits and investigations, apply to all taxpayers irrespective of their industries or backgrounds. If there is information showing that a 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 employs a number of methods to screen cases for an initial review. Cases may be selected for reviews through a computerized Assess First Audit Later System. The IRD also uses computer-assisted risk-based case selection programs to facilitate the identification of high-risk cases for field audit and investigation. IRD’s officers are guided by their experience and professional knowledge in selecting the cases identified by the systems. Rigid case selection criteria are not generally applied. At the same time, there may also be cases selected on a random basis as a means of promoting voluntary compliance.
The cost and duration of each tax audit or investigation case depends on a number of factors, including reliability of accounting records, availability of supporting documents, volume of transactions, number of years involved, taxpayer’s response time for IRD’s enquiries, etc. IRD’s target is to complete 80% of cases within two years.
Owing to the secrecy provisions of Section 4 of the IRO, the IRD is precluded from disclosing information of individual cases or commenting on any case.
HKFP and its founder have been the target of scrutiny and apparent complaints from four government departments over the past two years. All cases are now closed, with HKFP reporting two false complaints to the police.
For the full story on our tax probe, click here.
Donate instantly by card or PayPal.
We accept most cards and PayPal – unlock benefits as a HK$150/month donor here. One-off, monthly or annual donations accepted.
Donate via Patreon.
Support us with a one-off or regular contribution by signing up at: patreon.com/HongKongFreePressHKFP.
Donate by cheque.
One-off HK$ cheques save us on fees. Please make them payable to Hong Kong Free Press Limited. Please include your name and address for accounting purposes. And send to: Hong Kong Free Press, The Hive Kennedy Town, 6/F, Cheung Hing Industrial Building, 12P Smithfield Road, Kennedy Town, Hong Kong. [Please do not send cash.]
Donate by Octopus.
Scan our QR code in your Octopus app to make a one-off donation.
Donate by HSBC PayMe.
Scan our QR code in your HSBC PayMe app to make a one-off donation. Please include your name and email in the ‘comment’ field for accounting purposes.
Donate coins via Coin Dragon.
Got a big jar or bag of coins at home? Contribute leftover 10c, 20c, 50c, HK$1, HK$2 and HK$5 coins to HKFP at Coin Dragon machines across the city. Just select Hong Kong Free Press from the list of non-profits.
Donate by cash, FPS or bank transfer.
We welcome donations into our HSBC account but request – for accounting reasons – that supporters contact us in advance their name and sum they wish to contribute. Thank you!
Leave a gift by will.
Include a bequest provision for HKFP in your will or revocable trust. As a one-off gift, it will not be taxable. Simply state the sum you wish to share – or state it as a percentage of your estate – to the legal person of Hong Kong Free Press Limited. Our Unique Business Identifier is 64435978. (Should HKFP ever cease operations, all assets and funds will be transferred to a similar independent newsroom.)
Donations-in-kind: Donate gear or sponsor us.
We welcome donations of new computer or audio-visual gear, or sponsorship of our running costs.
| Package | Newsroom expense | Annual cost |
|---|---|---|
| A | Sponsor all web hosting, tech support, domain. | HK$140,727 |
| B | Boost HKFP’s video output by enabling access to AFP news wire video clips. | HK$20,000 |
| C | Sponsor all AFP news wire service, including text and photos. | HK$40,000 |
| D | Cover the cost of HKFP’s newsroom/office at The Hive co-working space. | HK$360,000 |
| E | Take on the cost of our Quickbooks accounting software. | HK$2,322 |
| F | Sponsor our Mailchimp newsletter software. | HK$10,710 |
| G | Sponsor health insurance for all staff. | HK$200,000 |
| H | Cover our Google work apps costs. | HK$20,307 |
| I | Sponsor a desk reporter for a year (inc. salary, MPF, insurance). | HK$300,000 |
Please get in touch if you wish to support us indirectly – here is an idea of items you could support.
Advertise with us, or sponsor a section.
HKFP reaches a highly engaged audience across our website, eight different social platforms and two newsletters. View our latest rate card for an overview of our impact, audience and partnership options.
Spread the word.
Help us grow – share our support page, invite friends to donate or follow us on social media. We are on Facebook, Bluesky, X, LinkedIn, YouTube, Instagram, Mastodon, and Threads.
