IRC to implement tax reforms, other initiatives to boost revenue

Business

TAX reforms and other initiatives will be implemented by the Internal Revenue Commission (IRC) to be aligned with Government policy to increase revenue, an official says.
Internal Revenue Commission assistant commissioner tax audit Samuel Loi explained to the Certified Practicing Accountants joint annual conference last Friday the increased budget allocation to the IRC and the need to build capacity.
“Outsourcing is an important aspect that needs to be addressed within the IRC,” he said.
“It is evident that the Government has to step in to provide the skill sets that are not available in the IRC.
“As a result we can see some of the areas which the profit shifting is concerned, that we need specialised skills to conduct audits and compliance work in those areas.
The IRC is in the process of administrative and structural reform with a greater emphasis on technology in its operations, Loi said.
“If we want to have a change in the service delivery, we need to change in the inputs as well,” he said.
“It’s quite hard to expect different outputs when the inputs remain continuously constant.”
He said the Government expected the IRC to increase its workforce 1000-plus by 2017 – a target set in 2014.
“We are now sitting at 576. So you can see how difficult it is.
“(Of) the budget that we recently got, 60 per cent of it goes to funding our human resource.”
The IRC is responsible for the collection of most of Papua New Guinea’s tax revenue.

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