Hong Kong media outlet cleared of tax evasion after year-long review

An online media outlet in Hong Kong 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, according to a journalists’ union.

The Hong Kong Journalists Association said on Monday it also had been required to prepay HK$730,000 in taxes this year after being 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 had their cases closed, association 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.

“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 alone the countless hours that they spent themselves on handling paperwork and books.”