Internal Revenue Commission

Firms’ tax liabilities can be transferred to individuals

Koim said individuals who run a company and incur a tax bill will still be liable even if they deregister the company.

The warning comes after change in tax laws, according to Koim.

“There’s a change of law to go after individuals, this is another message I would like the public to know,” he stated.

“People will think that I can register a company and once the IRC catches up with me, I can leave that company and go and register a new company.

Commission on major changes to tax legislation

IRC made this known following the announcement of a successful 2018 tax collection target.

The first major change that taxpayers should expect is the widening of the tax-free threshold and first-tier threshold for marginal income tax for individuals.

The Internal Revenue Commission has clarified that the legislative change reduces income tax burden on every individual in Papua New Guinea.

IRC corrects article on staff’s termination

Though the newspaper article stated that 28 people were removed over their alleged involvement in a loan racket, IRC corrected that only 23 of their staff were disciplined and terminated.

Commissioner of Tax, Dr Alois Daton, says the IRC is PNG’s largest revenue collector hence they expect their staff to be honest and conduct themselves professionally at all times.

“IRC we are very strict about how people operate in this organisation,” said Dr Daton.

IRC exceeds 2018 target

K7.9 billion was the 2018 budget target for the Internal Revenue Commission, or IRC.  

The Commissioner of Tax, Dr Alois Daton, said the IRC successfully collected and transferred K8 billion to the Waigani Public Account last year.

The total figure is 8.4 percent higher than government projections at the time of budget 2018, and 5.2 percent higher than government’s revised projections in the Mid-Year Economic Fiscal Outlook.

“In terms of corporate income tax, we brought in K1.7 billion and that is 8 percent above 2017 collections,” outlined Dr Daton.

IRC signs MoUs with provincial centres

The signing of the MOU with the Fly River Provincial Administration coincided with the official opening of a new IRC facility in Kiunga. The office space was allocated by the Fly River administration for its people to have easy access to IRC to make inquiries on tax matters, lodge documents relating to registrations, tax returns and pay their taxes.      

Palaso is Ambassador to Philippines

Commissioner General Ms Palaso will be taking up her new post as PNG Ambassador to the Philippines.

Deputy Prime Minister and Treasurer, Charles Abel expressed his gratitude on behalf of the government to the outgoing Commissioner General of Internal Revenue Commission, Betty Palaso.

Palaso has had 10 years of dedicated service to the country, which saw a lot of reforms to the Internal Revenue Commission.

One of those includes the separation of IRC from Customs and becoming an authority which could allow for the recruitment of more officers. 

Large Tax Payer Office allows IRC reforms

This new service center paves the way for the reforms IRC is undertaking, aimed at improving effective and efficient taxpayer service and taxpayer compliance initiatives.

Deputy Prime Minister Charles Abel, IRC Commissioner General Betty Palaso, representatives from the International Monetary Fund, Commercial Banks and other Large Tax Payers witnessed the opening of the new client service center today.

IRC update on mid-year target

In a statement, the IRC said by the end of June 2018, they transferred K3.36 billion to the Government against a projected mid-year target of K3.35 billion. This is net of refunds verified to tax payers and GST transfers to the provinces.

“The IRC is on track to meet its tax revenue target of K7.39 billion which was set by Government in the 2018 National Budget projections. This is about 65 percent of the total revenue to fund the National Budget,” said the IRC management.

IRC urged to Foster private sector environment

Deputy Prime Minister and Treasurer, Charles Abel, said this today in Port Moresby.

Abel also called for a simplification of the tax system for the benefit of SOEs.

Abel said the private sector was the driver of the economy and needed the enabling environment to prosper.

He added that the Small to Medium Enterprise sector must have a simple tax system.

Meantime, Abel said with the launch of the new corporate plan, Abel called for honesty and no tolerance on corruption.

PNGEITI capacity building timely, says Puiye

Acting Secretary of the Department of Petroleum and Energy, Kepsy Puiye, said this during the signing ‘Improving Resource Related Revenue Management Project,’ between the PNG Extractive Industries Transparency Initiative (PNG EITI and the Japan International Cooperation Agency (JICA).

Puiye said the project was timely give the expansions of resource projects in the country. He cited mining and petroleum as the expansion sectors.