Koim: People avoiding tax

The National Business

THERE is an increasing number of individuals who register their companies but never use the company accounts when making business transactions, an official says.
Internal Revenue Commission commissioner-general Sam Koim said some directors and shareholders used their personal bank accounts to do transactions.
“The directors and shareholders were using their personal bank accounts to disguise transactions that are supposedly recorded and registered as business transactions,” he said.
Koim said they were working with the Financial Analysis and Supervision Unit to monitor the huge number of transactions as well as unusual transactions.
“This is one of the things that we at the IRC would like to achieve,” he said.
On the penalties for such activities, Koim said: “If evidence demonstrates that it is tax evasion, or illegal activity orchestrated to divert tax money, and all of that.
“That attracts administration penalties which is severe.
“It can also amount to criminal proceedings and can be seen as tax fraud.”
The IRC and the Investment Promotion Authority (IPA) signed a memorandum of understanding (MoU) on Thursday for further collaboration between the two state agencies in terms of tax collection and business registrations.
The initial MoU was signed in 2013.
IPA managing director Clarence Hoot said: “In 2016, we had IRC set up a small office inside IPA and also provided a counter.
“One of the things we saw was ease of doing business.
“Also, for a long period of time, the Government had been trying to pursue a one-stop-shop concept where Government services in terms of doing business can be received at one point.
“By bringing IRC in, we’re heading towards that and maybe in the future by use of technology we can achieve the digitalisation of information.”

8 comments

  • Mr Koim, SME’s should be given tax concessions. Why are you targeting the small businesses and individual income tax? Focus on GST and reduce income tax.

  • Is this one of the reasons why ordinary citizen workers are taxed very heftily to cover? The government through the IRC should start looking back into the Sir Nagora Bogan Tax Report and do something about it. We, ordinary citizens are used as scapegoats for tax purposes. If the government is transparent and uses the tax money to provide better services such as roads, health, education etc, then the hefty tax can be justifiable, otherwise, it is very unfair!!

  • Sam Koim have just joined the IRC but he and his team should be looking at easing some form of income tax. Ordinary people are paying hefty taxes yet the services provided by the government does not reach everyone.

  • Reduce payroll tax. We are paying 35% payroll plus 10GST totaling up to 45%. This is like in a prison camp in our own country. How do you expect ordinary citizens to live decently in towns and cities? Use the wisdom!

    What about the big fish out there? RH, Exxon Mobil, loggings camps and Fisheries etc..

  • agree steven kuimp
    general commisioner to IRC. Mr. Comm. koim, please take that into account, payroll tax 35 + 10gst = 45 % , employers are struggling to earn a living, working extra overtimes, you remove from their pay and you charge them again on your GST. .

  • Leave the SMEs alone, this is what they’re just doing what they can to keep their heads above the water. Please check government officials and their cronies first.

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