IRC

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.

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 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 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 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.

IRC Commissioner General, Sam Koim, says in the current environment they will be able to meet or surpass that target.

 “The budget for this year the projections is about K8.1 billion for this year, that’s the money we will be transferring to the WPA. But our collections should be around K9 billion because we also collect GST and transfer 60% back to the Provinces and then GST Refunds.

“If everything works well, we are very optimistic that we will meet the target or even exceed it. That depends on COVID-19 and other unforeseen circumstances,” said Koim.

He said not just that exemptions should be reviewed but taxes due should be collected.

“Our tax system is a broken machine which is a leaking bucket with wide open holes with which we are attempting at fetching tax revenues.”

He added that countless advise to restructure the IRC and deploy tax collectors to target those who avoid taxes keep falling on deaf ears.

Juffa said a proper intelligence driven tax strategy managed and operated by elite well paid Tax Officers and Customs Officers will ensure maximum collection of taxes.