Executive calls IRC to task

THE Papua New Guinea Chamber of Commerce and Industry (PNGCCI) is calling on the Internal Revenue Commission (IRC) to launch a programme to target businesses that are not registered with them.
PNGCCI president John Leahy told The National yesterday the IRC had increased its enforcement activities in recent times and this was to be applauded.
“But the problem remains that they only seem to be targeting businesses that are already registered with them and are therefore already compliant at least in part,” Leahy said.
“I often hear local chamber members comment that when they asked the IRC auditors why a particular business was selected and not its competitor ‘across the road’ or otherwise nearby, the answer was that: ‘that business was not registered so they are not on the list for audit’.
“This is a ridiculous situation,” he said.
“In all these sectors we see lax and or corrupt enforcement of the rules.”
He said good corporate citizens who were typically members of local chambers of commerce and paid taxes, regulated wage rates, made compulsory superannuation contributions, complied with building and health and safety standards, were registered for GST, remitted their salary or wages tax on time and the list goes on were at a competitive disadvantage compared to businesses who did only some or none of these things.
“The way laws are administered is in many ways far more important than what the laws are themselves.
“The administration and enforcement of the various laws need much more attention,” Leahy said.
“This is especially an issue for small and medium size enterprises (SMEs) who are at a competitive disadvantage compared to non-compliant businesses.
“International and PNG experience is that there is a high failure rate among SME start-ups.”