Agencies ink info sharing deal to boost tax collection

A MEMORANDUM of agreement (MoA) was signed between the Internal Revenue Commission (IRC) and PNG Customs Services (PNGCS) on Monday to share crucial data to boost the country’s revenue collection.
According to a statement, the MoA signed by IRC commissioner general Sam Koim and PNGCS chief commissioner Ray Paul to enable IRC to have real time access to PNG Customs automated system for customs data (Asycuda).
The Asycuda system is currently being used by Customs to monitor imports, exports, processing and clearance.
PNG Customs administers import goods and services tax (GST) on behalf of the IRC but the IRC does not have access to the records kept by Customs.
That data is important as those same importing taxpayers in turn come to the IRC for inland GST as well as for GST refunds and for assessing the corporate income taxes.
The IRC and PNG Customs Services are two key State revenue agencies that together generate more than 85 per cent of the total revenue to the Government.
Both agencies used to be housed under the same organisation but the separation came about in 2009.
Since the demerger, IRC and Customs have operated on a memorandum of understanding (MoU) to share information as and when required.
After the signing, Koim said: “This is yet another strategic partnership that we are firming up to reduce the information gap that has been routinely exploited by misbehaving taxpayers.
“This is part of our aim to reduce the compliance gap and make GST as the number one revenue earner for the Government.”
At the meeting, Koim and Paul also established a technical working group that would meet monthly to have the regular interface happening, followed by heads of IRC and PNGCS meeting every quarter.