The National, Monday 20th August, 2012
I REFER to your editorial regarding the generous tax concessions given to mining and petroleum companies in PNG.
It is no secret that these companies structure their affairs to suit various tax jurisdictions.
It is also obvious that these companies, being publicly listed, make money through the stock markets.
However, the principles of taxation dictate these companies can only be taxed on income derived from these specific projects for which the tax concessions are granted.
Whatever income they make from the stock market, etc, will be subjected to tax in the relevant tax jurisdiction where this income is derived.
The IRC can only tax income derived in PNG from PNG sources.
But I agree these concessions are very generous.
Any review would have to be thorough as it would need to take into account other taxes as well so a fairer revenue outcome for the state is achieved.
Lastly, IRC is merely a regulator.
Tax policy is dictated by Treasury.
By law, only the NEC has the powers to grant tax concessions, not the IRC.
A lot of citizens do not realise this.
Over to you, Treasury.