IRC

IRC Online Client Platform Underway

This was made know at a press conference held last Friday, 1st October. IRC Commissioner General, Sam Koim announced that the online client platform is being development by NiuPay Limited.

The platform will offer a suite of IRC taxation services online and would enable individuals, organisations, for the first time to lodge returns, pay their taxes and other interactions previously only performed at an IRC office.

Mr Koim said the platform’s development is part of IRC's efforts to achieving a new technological horizon.

Phase 2 Tax Project Launched

The GST section 65A project started in August 2020 with 16 authorized withholders in the government sector. The project aims to address the non-compliance of suppliers to government and prevent revenue leakages.

To ease the labourious work engaged in reporting and accounting for GST, IRC collaborated with the Department of Finance to configure the Integrated Financial Management System (IFMS) to withhold GST. Phase one of IFMS was launched in May, with 37 government departments now using the IFMS system to withhold GST.

IRC: Mandatory Valuation

The notice was issued to taxpayers, real estate agents, conveyance lawyers, banks, land registry officials, and others involved in land transactions (both sellers and buyers) and the general public.

In a press conference on Friday 1 October, IRC Commissioner General Sam Koim announced the mandatory valuations, saying the IRC has uncovered many instances of gross evasion of stamp duties and undervaluation of properties, thus a requirement for mandatory evaluation.

Parkop welcomes GST injunction

The National Capital District Commission has welcomed the National Court ruling in granting an injunction against the IRC.

NCD Governor Powes Parkop called on IRC Commissioner General Sam Koim to remit GST funds from the National Government’s component of GST collected in NCD and not from the 60% component belonging to NCDC’s basket.

IRC to probe COVID-19 contractors

IRC Commissioner General, Sam Koim, said this is part of the Tax Crimes Prosecution initiative that they are undertaking this year.

Koim said companies who recently made headlines after receiving contracts under COVID-19 Funding are also being looked into.

Koim said the tax office continues to make it its business to collect revenue for the Government from hard hit tax payers, and spending agencies must spend it responsibly in productive areas.

IRC distributes GST

Koim said the IRC previously allowed the NCD to distribute the GST components to the provinces and the MKA, however, this has been inconsistent resulting in continuous disputes.

The IRC has taken on this responsibility and oas of today, remitted the GST components to the two prvinces and the MKA.

By law, out of the 60% GST collected and retained by the NCD, the municipal Government is to distribute 10% to Central Province, 3% to Gulf, and 2% to the MKA.

IRC and Finance partner to improve GST collection

The objective of the merger is to improve the level of compliance and GST collection amongst Government service providers and reduce the administrative burden on all National Government Agencies.

The merger was launched today in Port Moresby.

ISC Commissioner General, Sam Koim, said it is their intention to make GST the number one revenue earner in the country.

Part if the strategy to achieve this is to invoke Section 65A of the GST Act 2007.

IRC to address Tax on Consultants

IRC Commissioner General, Sam Koim, says the current tax on consultants is being abused by companies.

 

Koim said their concern is the manipulation of this tax arrangement by companies who engage people as consultants, but, who fill in line positions or jobs.

 

IRC undertakes de-grouping

IRC Commissioner General, Sam Koim, says the aim of the exercise is to accurately record Goods & Services Tax at the point of sale, in whichever province it may be in, and revert the GST distribution to that Province.

Under the current tax legislation, the IRC distributes 60% of GST attributed to the Point of Sale back to the province in which the transaction was made.

During the signing of the MoU for the establishment of an IRC Office in Gulf Province, IRC Commissioner General Sam Koim, said the IRC was undertaking a de-grouping exercise for GST collections.

IRC to prosecute

IRC Commissioner General Sam Koim says the organization has profiled a number of cases and will begin prosecutions very soon.

Speaking at the launching of the IRC’s 2021 Work Plan, Commissioner General, Sam Koim, said the IRC will begin criminal prosecutions for persons and organizations involved in tax offences.

Koim said the only way to deter tax offenders is to imprison perpetrators.

“If you effectively put people behind bars that’s the time that people will change. That the time tax fraudsters will change,” said Koim.