Groups that endanger national security to lose charities status, tax exemptions, Hong Kong’s financial services chief warns

Amended tax guide for charitable institutions and trusts applies with immediate effect, according to minister Christopher Hui

Under revised guide, any group that ‘supports, promotes or engages in activities that are detrimental to national security’ will not be recognised as a charitable organisation

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Secretary for Financial Services and the Treasury Christopher Hui. Photo: Jonathan Wong

Published: 3:30pm, 13 Sep 2021Updated: 11:33pm, 13 Sep 2021

Groups that endanger national security will lose their status as charities and stop benefiting from tax exemptions, Hong Kong’s financial services chief has warned, after pro-establishment lawmakers accused him of doing too little to crack down on fundraising campaigns by the opposition bloc.

Writing on his official blog on Monday, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said an amended “tax guide for charitable institutions and trusts of a public character” would apply with immediate effect, a move described by analysts as targeting opposition-leaning social welfare or community groups.

Under the current law, charities are exempted from paying tax, while taxpayers also enjoy deductions for making charitable donations.

The Inland Revenue Department has revised the tax guide to ensure it complies with the national security law. Photo: Fung Chang

The move came five days after Hui faced a barrage of questions from pro-establishment lawmakers in the Legislative Council about the 612 Humanitarian Relief Fund, which has paid out more than HK$243 million (US$31.2 million) to those facing criminal prosecution or financial hardship as a result of the 2019 unrest.

The city’s police force revealed earlier this month that its National Security Department was investigating the fund – which is said to be a trust – and the Alliance for True Democracy, which had provided its bank account to the fund’s trustees for holding donations.

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