IRC cracks down on tax evasion

THE Internal Revenue Commission (IRC) has taken decisive action against a major mining company for engaging in a tax avoidance scheme and has imposed a tax assessment of K11.79 million.
In revealing the results of an audit action, IRC commissioner general Sam Koim highlighted several incidents of visa violations and tax evasion.
“We are aware that foreign workers come on a work visa of one company but then end up working for multiple companies. We know that foreign workers are paid through their overseas/home bank accounts but are lowly paid here in PNG to avoid taxes. To facilitate that, they sometimes sign two contracts,” Koim said.
“Our investigations revealed alarming discrepancies, including foreign workers entering on business visas to work line positions within companies, thereby avoiding paying the appropriate taxes due to the Government.”