Koim: Data shows many people fail to pay taxes


STATISTICS show that a lot of Papua New Guineans are not paying taxes to the Internal Revenue Commission (IRC), commissioner-general Sam Koim says.
Koim said it was unfair because everyone used Government services funded by taxpayers.
“All infrastructure and services are funded by taxpayers through the tax they pay,” he said.
“In that context, you can run your private business and make your money but at least pay a sum or portion to the Government.
“That’s the understanding of where taxes come in.”
Koim said some of those not paying taxes were even getting contracts from the Government at the district or provincial level.
The IRC signed a memorandum of understanding with the Small and Medium Enterprises Corporation (Smec) to enhance tax compliance and enforcement activities through data sharing among small businesses on Wednesday in Port Moresby.
“Through these (sort of) relationships and partnerships that we are building, we hope to close the tax gap that exists,” Koim said.
“We have a big challenge.
“Our non-compliance rate in the area of small, micro businesses is huge.
“Some of them even come to register for TIN (taxpayer identification number) and with the Investment Promotion Authority as well.
“But when it comes to paying and filing tax, they never come forward.
“They get the TIN and open a bank account.
“That’s it.
“They start their business.”
The IRC is establishing a relationship with the banks which has data on them.
“Sooner or later, we will be closing in on them (businesses),” Koim said.
“This is in the interest of the operators to come forward and file.”