Internal Revenue Commission

IRC has no place for corrupt officers: Koim

Mr Koim made this bold statement after announcing the arrest of one officer and the dismissal of another for separate misconducts.  

The terminated officer worked at IRC for 10 years, moving up the ranks to be a manager at the Debt Recovery Division (DLED). He used his position to print out a consolidated statement of accounts for particular taxpayer in 2019 which was subsequently used to extort money from that taxpayer. He was dismissed from IRC.

Tax relief measures announced

In a statement released on March 31st, the Commissioner General, Sam Koim, said “in the face of this crisis, we are immediately responding to keep the taxpaying community’s productive capacity intact as much as possible. Figuratively speaking, we have to keep the cows alive so that they continue to produce the milk after this crisis”.

“Although we as a country have so far been saved from this virus, we are inescapably vulnerable to the impact it will have on our economy.  We are not oblivious to that hence these measures to supplement the Government’s overall stimulus package.

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.