Internal Revenue Commission (IRC)

Logging operator charged K140m for tax evasion

This amended assessment (tax bill) is a direct outcome of an extensive transfer pricing audit conducted on the taxpayer. 
This was revealed today by the Commissioner General, Sam Koim when announcing the outcome of the first of more than 20 audits initiated since he took office.

A kina saved is a kina earned, says Koim

Commissioner General for the Internal Revenue Commission, Sam Koim, made these remarks when addressing the National Press Club in Port Moresby recently.

A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.

Commissioner Koim said every taxpayer in the country has the legitimate right to question how their tax has been used by the Government.

He said any kina that is saved, is a kina earned.

BSP, tax compliant

The payment due in April 2023, was paid early on March 24, 2023.

IRC Commissioner General Sam Koim confirmed that the tax organization received this payment.

He said the tax payment was paid on the 45 per cent rate. He acknowledged that BSP is a tax compliant organization.

IRC forges strategic partnership

Koim stated at the signing of a Memorandum of Understanding (MoU) between the BSP Financial Group Limited (BSP) and the Internal Revenue Commission (IRC) on the 28th of March, 2023 at the IRC Headquarters. 

The MoU establishes a framework for cooperation and coordination between the tax administration and the bank. The MOU also sets out the expectations and responsibilities of each party and outlines the process for resolving any disputes or issues that may arise during the collaboration.

Porgera to reopen soon: PM

He said the Government did not have everyday control over IRC’s work IRC had made assessments and had been in conflict with Barrick over their assessment criteria.

“Barrick has asked some fundamental questions, especially on the IRC’s definition of ‘taxable stripping’, in as far as resource harvest is concerned,” Marape said.

“Barrick is of the view that the current ‘taxable stripping’ definition is not consistent with practice and law, hence the prolonged dispute, so we had to intervene.

Opposition raises concern on tax liability on Porgera

Leader of the Opposition, Hon. Joseph Lelang, made this comment in response to the National Executive Council (NEC) appointment of a panel of three independent experts to review a tax dispute between the Internal Revenue Commission (IRC) and Barrick Niugini Ltd (BNL).

Lelang said if there was a dispute between the IRC and Barrick, there are appropriate forums under the law for dispute resolutions.

This new panel of experts, he said is a waste of resources and time and has no legal standing at all to resolve any dispute.

Panel established to review tax dispute

NEC noted the progress of the activities required to reopen the Porgera Gold Mine and was concerned that the tax matter was prolonged.

While it continues to observe the independence of the internal revenue commission, it availed itself of the opportunity to be advised independently of the issues surrounding the taxation dispute.

K20,000 Threshold Increase, Released

In the recent 2023 Budget sitting, this tax-free threshold has further been increased to K20,000 per annum.

Treasurer, Ian Ling-Stuckey, has announced that this change is only for a 12-month period and is scheduled to end on 31 December 2023.

“The Government has yet to indicate whether this threshold will be maintained or revert back given it is still being labelled as a temporary relief measure,” states Sam Koim, Commissioner General for the Internal Revenue Commission (IRC).

IRC Commences Comprehensive Audits

Commissioner General Sam Koim made the announcement on Thursday 22 December 2022. 

He said, “We have been profiling these two companies (names withheld for confidentiality reasons) for over a year. The letters formally notifying them of the audit were signed and served today.

IRC reminds taxpayers of due dates

Goods and Services Tax (GST) is a tax on the consumption of goods and services and is charged at 10 percent of the sale price.

IRC states, “Any business with an annual turnover of K250,000 is required to register a GST account under their Tax Identification Number (TIN) with IRC and charge GST. That business is also expected to pay and file on time.

“Any business with a turnover of less than K250,000 can charge GST so long as they open a GST Account with the IRC.”