Hong Kong media outlet cleared of tax evasion faces ‘unfair’ HK$40,000 costs

Online outlet cleared after year‑long review, but costs and penalties in other cases draw criticism of audit practices from journalists association

A local online media outlet has been cleared of tax evasion after a year-long review, but the process still cost HK$40,000 (US$5,106) in accounting fees, the Hong Kong Journalists Association said on Monday.

Describing the case as an “unfair punishment” on media with “zero fault”, the association said it had been required to prepay HK$730,000 in taxes this year, after also coming under review by the Inland Revenue Department since November 2023.

Of the eight media outlets and at least 20 journalists reviewed by the department for salaries tax, profits tax or rates, at least two organisations have had their cases closed, the association’s chairwoman, Selina Cheng Kar-yue, said.

In the case of Hong Kong Inmedia, an online outlet established in 2004, Cheng said the department’s year-long review found no tax shortfall, but the group incurred about HK$40,000 in administrative and accounting costs to prove its innocence.

“It imposes undue stress and unfair punishment on those media, even if they were found to have not evaded any taxes,” Cheng said.

“They were found to be at zero fault, but they spent HK$40,000 on auditing and accounting fees, let a lone the countless hours that they spent themselves on handling paperwork and books.”

Another review involving English-language online outlet Hong Kong Free Press found a tax shortfall of about HK$3,000 in one financial year.