HKJA faces $400,000 tax demand from Hong Kong authorities

The Hong Kong Journalists Association received a letter from the Inland Revenue Department at the end of November last year, stating that it was reviewing HKJA’s taxes for the 2017/18 financial year. After preliminary communication, the IRD requested that HKJA submit detailed accounting records for several years, as well as profits tax returns for the six years between 2017/18 and 2022/23. The HKJA last week received a tax assessment letter from the IRD, demanding that the HKJA pay around HK$400,000 in profits tax.

The IRD stated that our association may lodge an objection within one month, or it will have to pay the amount in full. The IRD also warned that it may later collect more taxes from the HKJA for other years.

The IRD explained that the amount of payable taxes it has asked for is assessed based on the size of HKJA’s bank deposits. We are perplexed by this. The HKJA will file an objection against this assessment for 2017 and has engaged professionals for assistance.

Over the years, HKJA’s operational funding came mainly in the form of sponsorship from major public and private organisations at its annual fundraising dinners. The HKJA emphasises that it has always complied with the Trade Unions Ordinance, which required its accounts to be audited. HKJA has always submitted accounting and audit reports to the government in a timely fashion. We will continue to cooperate with the IRD’s requests for financial documents, and any other requests for meetings.

Hong Kong Journalists Association
January 25, 2024

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