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.
by MARK OPUR
