FCC statement on multiple tax audits of independent media organisations

The Foreign Correspondents’ Club, Hong Kong is concerned by reports of multiple independent media outlets facing simultaneous tax audits and backdated demands from the Inland Revenue Department (IRD).

At a press conference on May 21, the Hong Kong Journalists Association (HKJA) said it had evidence that at least six news outlets—Boomhead, Hong Kong Free Press, InMedia, ReNews, The Witness and another outlet that wished to remain anonymous—had recently been subject to additional scrutiny of their tax affairs after being “randomly selected” for an audit.

In addition, 20 people linked to Hong Kong independent media are facing similar tax inspections, according to HKJA. In a statement, Hong Kong Free Press said that the scrutiny “has diverted resources, manpower and funds away from journalism”.

The FCC, whilst understanding the need for targeted tax audits, has reached out to IRD to ask why so many independent media organisations were selected simultaneously for random audits. The FCC has asked that IRD consider enhancing its transparency because we believe that an explanation as to why these investigations have occurred simultaneously is a necessary improvement to the system. In our view, a reasonable and timely explanation by IRD would positively impact the international perception of Hong Kong as a business centre and its commitment to press freedom, which is guaranteed in the Basic Law.