Probe on non-tax-paying firms

By SHIRLEY MAULUDU
THE Internal Revenue Commission (IRC) will prosecute those businesses that do not pay tax but continue to get contracts from Government agencies, commissioner-general Sam Koim says.
Koim made specific reference to those businesses and companies that had been given contracts to provide services during the Covid-19 pandemic period.
“My staff are coming to work under the Covid situation, and whatever little money we are making here from hard working tax payers, we are anticipating that those spending agencies should spend it responsibly, and in productive areas and not wasted,” he said.
“At the moment I have engaged my audit division and we are also going to commence tax time prosecution.
“It was supposed to happen this month (April) but due to the Covid-19 shutdowns we are deferring it a little bit.
“We are auditing one or two entities that have hit the spotlight in terms of getting contracts using Covid funds.
“One of those controversial companies has never filed, has never paid a single toea but got the contract using Covid funds.
“We will be taking actions on those companies.
“We all are struggling, businesses are struggling to keep the Government coffers in liquid.”
Koim further urged spending agencies to ensure tax compliant entities were given contracts.
“We will be prosecuting some of them,” he said.
“We will be getting hard on those entities that hardly pay a single toea to the Government coffers but yet continue to get business from Government.
“That is in line with the same thinking that Marape Government have which is to give business and help those who need Government’s assistance.
“That’s the warning to all the spending agencies to ensure that money that my staff are risking to make here, money that small businesses are struggling to continue to pay taxes faithfully must be used in productive areas and must not be wasted.
“Secondly, contracts must be given to tax compliant entities,” he said.