By LUKE KAMA
THE National Parliamentary Services (NPS) has made arrangement with the Internal Revenue Commission (IRC) to pay outstanding tax of K24 million owed for the last six years, acting parliament clerk Kala Aufa says.
Aufa said this in response to allegations raised against Parliamentary Services.
A source from the NPS, who wished to remain anonymous, said they had not been paying tax to the IRC since 2014 as a result of mismanagement.
“Though the salary taxes have been deducted from staff and Members of Parliament, those monies have never been paid to IRC in compliance to tax rules and laws,” the source said.
The source said even cheques had been raised dating back to 2014 but no proper tax lodgement applications and payment registry were done.
“As a result, IRC took steps to freeze the Parliament accounts with the Bank South Pacific, an issue that has not been solved yet,” the source said.
Aufa responded that the non-payment of tax was for over seven years and had accumulated due to the tough financial situation facing the country.
“The Parliamentary Services has been under budgeted every year and has not received its full funding,” he said.
“When MPs request for funding or any other benefits that come under their perks and privileges, we just give them even though we are under budgeted and you expect us not to meet some of our commitments, likewise our tax obligations,” Aufa said.
By LUKE KAMA