Charities on National Security Alert

Hui says charities endangering national security not tax exempt

 

Up until today, donating to a charity was considered a sign of individuals caring for the community. 

But now the Hong Kong government is making donors think twice about giving their money away now that groups that endanger national security will lose their status as charities, and stop benefiting from tax exemptions.

The Secretary for Financial Services and the Treasury Christopher Hui Ching-yu announced this on his official blog on Monday. He wrote that the "tax guide for charitable institutions and trusts of a public character" had been amended with immediate effect.

Change refers to 612 Humanitarian Relief Fund

It is largely seen as targeting opposition-leaning social welfare or community groups.

Before, charities were exempted from paying tax, and taxpayers enjoyed deductions on their income tax for making donations.

Hui's announcement was a response to the barrage of questions he faced from pro-Beijing lawmakers in the Legislative Council about the 612 Humanitarian Relief Fund that 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 anti-government protests.

Earlier this month the National Security Department revealed it was investigating the fund as well as the Alliance for True Democracy, which provided its bank account to the fund's trustees to hold donations.

Now the Inland Revenue Department will no longer recognize any group that "supports, promotes or engages in activities that are detrimental to national security" as a charitable organization. The tax bureau will also revoke exemptions from paying tax.

Inland Revenue will check on groups periodically

"Carrying out charitable activities in society to promote public interest is certainly worthy of encouragement, but we must also prevent people with ulterior motives from using the name of charity to actually endanger national security," Hui wrote.

"Therefore, if a group is found to participate in or use its resources to support or promote activities that are not conducive to national security after review, we will not hesitate to exclude it as a charitable organization and revoke its tax exemption status."

Hui added the Inland Revenue Department will conduct regular reviews and pay attention to "whether the substantive nature of the organization concerned has changed," Hui added.

To be recognized as a charitable organization, a relevant group must be established purely for legally recognized altruistic purposes, such as poverty relief, promotion of religion or education, or for the benefit of the public.

Which other organizations will be targeted? It will be a matter of time before more will be revealed, but in the meantime, the new regulation really makes people think twice about donating to what they assume is a legitimate charity...

 

Two Sides to the Story

The children's books allegedly have "seditious" messages

 

For anyone wondering what it is like to be behind bars day after day, Lorie Lai Man-ling gives a bit of insight. She is the leader of the speech therapists union, and she along with the entire executive council were arrested in July for allegedly publishing "seditious" children's books.

She wrote an open letter and thanked people for visiting her everyday. "Thank you all for not forgetting me," Lai wrote.  

Lai and another woman were arrested in July

"With smartphones, conversations and idea exchanges in modern life become easier and more immediate -- there is no barrier in communication. Yet not until being held in remand did I realize the importance of communication. Every letter to me is a bridge to the world, and every word in it carries significance."

While Lai admitted she was mentally prepared for arrest, she asked if that in turn means she is guilty. "If not, what are the grounds to arrest and remand me?"

Lai said life behind bars is simple -- everyday eat, sleep, read, write and answer nature's call. But she insisted not to stop thinking, otherwise she will give up the struggle to defend her rights.

"Although the odds are more and more unfavourable today in Hong Kong, our states of mind have an effect on how we perceive the society and reality," she wrote. "Our bodies can be held captive, but our minds will always be free."

Lai is being held in this prison in Tuen Mun

While Lai sent out a public appreciation to people making the effort to visit her at Tai Lam Centre for Women in Tuen Mun, Secretary for Security Chris Tang Ping-keung claimed inmates are using treats like chocolates to "build up forces" to endanger national security.

Tang alleged the prisoners are using visitors with religious or district council backgrounds to "spread their messages" to the outside world.

He also said the authorities have noticed organizations like the 612 Humanitarian Relief Fund are sending letters, asking prisoners to "continue with their struggle".

"These [actions] seriously affect the rehabilitation program and have sown seeds of endangering national security," Tang told reporters at the Legislative Council today.

Tang claims prisoners are spreading messages

Everything, even treats in prison can be construed as endangering national security. But the authorities can control what goes in and out of the jails. 

Tang makes a great argument for people to leave Hong Kong.

The Shutdowns Continue Abruptly

Donations for the 612 fund was to stop at end of September

 

The fund that helped financially support those who were arrested or seriously injured during the 2019 anti-government protests abruptly announced it is immediately ending the collection of donations.

Donations to fund stopped today

The 612 Humanitarian Relief Fund made the decision because the Alliance for True Democracy, the group whose bank account it uses, said it will no longer execute payment requests.

This comes after the national security police announced they were investigating the two organizations and ordered them to hand over information, including details of donors and recipients.

"We are deeply conscious of the impact of this turn of events on current applications, and will do our best to look for all possible solutions and relief," the fund said in a statement on Facebook.

The fund is currently seeking legal advice on whether donations made recently can be refunded.

As of Monday the fund said it has about HK$7.2 million in the bank account.

How people are going to continue without this kind of funding is unclear, but it will be particularly hard for those currently in trial or waiting to go to trial and now the money for legal fees has dried up.

City Forum was lively debate show for 40 years

Meanwhile RTHK has cancelled another show which was an outlet for the public to raise their opinions and questions.

Started in 1980, City Forum was a weekly live debate show which invited guests like politicians, academic and opinion leaders to come and discuss topical issues.

The last show was aired on July 18 and talked about the regulation of disposable tableware. It was supposed to start its new season this month.

It had been held every Sunday at Victoria Park or Carpenter Road Park, and in a Wikipedia entry about the show, it says that whenever a pro-democratic politician spoke, pro-Beijing "Victoria Park uncles" would yell outside the forum venue to drown out their voices, or chant, "stray dogs!"

Attendees could directly ask guests questions

But those colourful days were long gone when the pandemic started early last year and the debate was moved indoors. 

On Sunday, RTHK refused to confirm the decision, saying it was an internal management decision, though critics say the decision seeks to silence dissent.

Meanwhile, the RTHK Programme Staff Union warned that cancelling the show would "severely affect" RTHK's fulfillment of its mission to provide "an open platform for the free exchange of views without fear or favour" as stated in its charter.

Chinese University political scientist Ivan Choy Chi-keung said: "Under the new management, RTHK seems to be trying to avoid critical views being aired in programs so as not to let social harmony be disturbed. The role of the public broadcaster seems to have changed to promoting national identity, patriotism."

He added RTHK owed viewers an explanation of its decision to drop City Forum.

Some claim pro-democracy bias of the show

"It is not just another show," he said. "City Forum has been running for over 40 years. Viewers are expecting it to return. RTHK has a responsibility to explain to the viewers what will happen to City Forum."

But maybe Elizabeth Quat of the pro-establishment Democratic Alliance for the Betterment and Progress of Hong Kong has the real reason behind the show's demise: "I don't think the public will lose much without the program. The public is not presented with balanced views on the program. Pro-government guests are usually unfairly treated because the host is biased towards the opposition camp."

So the truth comes out?

The host, So King-hang, refused to comment.