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Lodgement of income tax returns
THE way in which taxpayers are
required to lodge their returns, and the way in which the IRC
assesses them, are obviously crucial to the smooth operation of
the tax system we have adopted. The lodgement of returns is
particularly dealt with in some detail below.
Every year the Commissioner General publishes in the National
Gazette a notice requiring specified categories of persons to
lodge in the prescribed manner and within the time specified in
the notice or within such extended time, a signed income tax
return setting out a full and complete statement of the total
income derived by him during the year of income.
The statement should also include any deductions the taxpayer
wishes to claim for that year of income. The persons usually
required by the Gazette notice to lodge returns include
individuals deriving taxable income from other sources apart
from their salaries or wages, companies, trust estates, and
superannuation funds.
Individuals on salary or wages only are not required to lodge
any return as tax on salary or wage is a final tax and is borne
by the taxpayer when the tax amount is deducted from his salary
or wage.
If you fall into any one of the categories of persons who is
required to lodge a income tax return and are in doubt as to the
sort of information that is required to be included in the
return, you need to obtain the relevant forms from the IRC to
see what exactly it is that you will be required to include on
the return.
There are specific requirements on the returns lodged by the
different categories of persons.
In the case of companies for instance, the returns must be
accompanied by the balance-sheets, profit and loss accounts,
statements and other documents mentioned in the forms.
For partnerships, the individual partners are required to lodge
separate returns.
The Commissioner General may exempt certain classes of persons
from the requirement to lodge income tax returns, and such
exempted persons need not furnish a return unless so required by
the Commissioner General.
The National Gazette notice usually requires that returns be
filed on specified dates.
However, in all cases the Commissioner General has the powers to
extend the time for lodgement of returns.
If you know that you would be late in filing a return, then you
need to request for an extension of time to lodge the returns.
This is to ensure that you are not hit with any late lodgement
penalties.
It is also possible that you may be required to lodge a further
or fuller return by the Commissioner General even if you have
already lodged a return for the same period.
All returns of income are required to be lodged with the
Commissioner General at his office in Port Moresby.
A return is not deemed to have been duly furnished to the
Commissioner General unless and until the duly completed form,
together with all necessary annexures, has been received at his
office in Port Moresby by an officer authorised by him to
receive such returns.
Tax agents, who are usually accountants, are often engaged to
prepare tax returns.
There are also other tax agents who may prepare tax returns but
you need to satisfy yourself that they are also registered with
the PNG Institute of Accountants.
Some tax agents may not have the authority to prepare the
accompanying documents such as financial statements,
balance-sheets.
IRC officers can not prepare returns for any other person.
They can not advise or even assist in the preparation of
returns.
The only time when they can do that is if it is related to the
performance of their duties.
They cannot even charge a fee for preparing a return if it is
not work related. They can be disciplined if they are found to
have done that.
 
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