Internal Revenue Commission (IRC)

IRC and ICSA join forces to combat tax evasion

IRC launched a project called “Project Masta”, initially aimed at addressing tax evasion schemes by foreign workers and local group employers.

The initial investigations revealed that foreign workers would come on a work visa sponsored by one company but then end up working for multiple companies.

There are also instances where foreign workers are paid through their overseas bank accounts but paid a lousy living allowance here in Papua New Guinea (PNG) to evade taxes.

Internal Revenue Commission Resolves Historic Tax Dispute with Digicel Group

The genesis of the dispute traces back to the enactment of the Market Concentration Levy and Additional Company Tax by Parliament, imposing tax obligations of K350 million on Digicel (PNG) Limited and K190 million on BSP Financial Group Limited (“BSP”).

BSP, IRC announce company tax settlement

Commissioner General of the Internal Revenue Commission (IRC), Sam Koim and BSP Financial Group Ltd chief executive officer, Mark Robinson have announced that a settlement of the Supreme Court judicial review of the PNG Government's imposition of the Additional Company Tax has been reached.

In December 2022, pending the judicial review's outcome, BSP deposited K190 million into an escrow account with the Bank of PNG.

No Tax Increase on Public Servants Salaries

Secretary Ms. Taies Sansan affirmed that Internal Revenue Commission Commissioner General Sam Koim has confirmed there is no tax increase affecting public servants' salaries.

Secretary Sansan has clarified that the Internal Memo dated 9th January 2024, which was circulated internally in DPM and went viral on social media was information for internal consumption however ended up on social media.

IRC achieves revenue growth

Impressively, K7.211 billion was transferred to the Waigani Public Accounts by June 2023, exceeding expectations. Excluding the 2022 carryover balance, the IRC achieved unprecedented heights in revenue collection during the first half of 2023, as per its revenue performance report.

The IRC stated that the K6.891 billion generated surpassed the year-to-date target by an impressive 20 percent and a remarkable 10 percent increase compared to the half-year results of 2022.

The leading tax types that have contributed 90 percent of the 2023 half-year collections are:

GST awareness for suppliers

The session is conducted by the Internal Revenue Commission, in collaboration with the Department of Finance.

The first day was on Tuesday, August 1st, where it was attended by ‘authorised withholders’ – which are the provincial governments, district development authorities and provincial health authorities.

The second and final day was for suppliers and service providers to these authorised withholders.

“It was positive to have the number that turned up,” said Acting Assistant Commissioner for IRC’s Tax Audit, Ranzoline Kalokalo.

IRC to host GST awareness

The event, which is a collaboration between the IRC and the Department of Finance, aims to enhance the understanding and compliance of provincial governments, district development authorities, provincial health authorities and suppliers/service providers.

The awareness will also include general tax compliance and the Integrated Financial Management System (IFMS).

ICAC meets with IRC

This meeting was part of ICAC's effort to connect with key stakeholders. Commissioner General Sam Koim extended congratulations to the ICAC team and assured IRC's commitment to collaborative efforts in combating corruption. IRC has recently established a dedicated Tax Crime Division to investigate and prosecute tax evaders, and they will closely cooperate with ICAC to hold accountable those who defraud the State through tax evasion.

IRC emphasizes importance of taxing right

Log exporting companies, through adverse transfer pricing schemes, have deftly reduced the taxable base, thus significantly diminishing their tax obligations.

Corporate Income Taxes, export levies, royalties, and other fiscal impositions have all been calculated based on this reduced foundation. This disconcerting reality has been substantiated by the first results of the IRC's ongoing audits within the logging sector.

MOU signed to address forest tax issues