IRC’s problems

Letters

I WRITE regarding the startling revelation made by the acting commissioner of IRC, on the K18bil owed by 127 companies in 2016.
I recall from the media reports recently on Prime Minister James Marape’s visit to IRC where he discovered that only 14,000 of 157,000 companies registered pay their taxes in 2018, thus, the recent disclosure by IRC do not add up.
In consideration of the IRC competency can be analysed using the figures provided, it is assumed that this organisation has been very poorly managed or does not have proper revenue collections strategies since 2014.
Dr Alois Daton has been the commissioner of tax over the last 10 years but failed to rectify the collections issues.
There is no guarantee that he has the solutions.
The treasurer, in fact, hit the bulls eye by saying there would be problems recovering the K18bil.
I suggest heads should roll at the IRC executive level before and get capable officers to do the job.
IRC has been the only government agency that recruited number of audit consultants and expatriates employees within the last 10 years but show nothing for it.
I am sure PM Marape and Treasurer Basil are fully aware of IRC’s problems and the excuses weaved by the executives on the low revenue collections over the years.
Year after year the government is forced into supplementary budget because of low tax revenue collections.

Taua Taxation Observer