IRC exploring ways to reduce tax burden compliance: Koim

The National Business

THE Internal Revenue Commission (IRC) is exploring ways to reduce the burden of tax compliance, says commissioner-general Sam Koim.
Koim told members of the Port Moresby Chamber of Commerce and Industry at a business breakfast yesterday that part of that process was about fixing its database.
“We want to do some data analytics, not only on collecting money but also collecting data,” he said.
Koim said the IRC would look to reduce filing obligations for salary and wage taxes.
“We want to reduce the burden as much as possible,” he said.
“We are also embarking on a digital transformation path, to enable us to do some of this work.”
Koim said the IRC had been working with Investment Promotion Authority (IPA) to share data and align their business structures.
He said IRC was undertaking a project with IPA to ensure companies registered were given a tax identification number (TIN).
“There are a couple of business structures that has significant tax implications and we are trying to under taking that alignment process with IPA,” he said.
“We are moving into real time data collection and the use of analytical tools to profile taxpayers and know their transactional behaviour.
“We will be signing a lot of similar partnerships in the near future.”
Koim said one of the tax compliance challenges faced by IRC was the increasing trend in illicit phoenixing activities, whereby, people abandon or dissolve existing companies and register new ones to carry on the business in order to avoid paying tax.

2 comments

  • Mr. Koim,you’re doing fine job. Some of us are paying high taxes so look into that as soon as possible please.

  • What are brilliant approach, Sam Koim and IRC team. It is a long waiting desire for all the tax payers, especially public servants to reduce tax on salary. I salute Sam Koim and team for taking a bold step in listening to the crying of those humble tax payers who will soon experience reduction in their tax on salary.
    We are State entity and we have the obligation to contribute to the nation’s economy but at the certain level, not at the level what you currently got from us. The new tax structure sound economical and fair to the tax payers and the State. I sincerely acknowledge that and awaiting to eventuate soon.

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