Talk to IRC to resolve tax issues, businesses told

BUSINESSES that are owed outstanding payments by the government should be able to make arrangement for their taxes, Deputy Prime Minister Charles Abel says.
He said that while those businesses should talk to the Internal Revenue Commission (IRC), they should also know that the government is in the process of settling its accounts in the private sector.
“The government has got its creditors and it is an issue which is not new to us and, again, we are trying to manage and clear those debts. We even owe some of our state-owned enterprises money as well,” Abel said.
“With the IRC there is some flexibility there for businesses. The government is encouraging people and businesses to pay their taxes and we announced the amnesty where if you pay all your taxes they will waive all penalties for late payment.
“There are also repayment plans with the IRC. They are actually allowing flexibility with businesses if they come in early and sit down with them.
“While we are encouraging people to pay up taxes and that there are flexibilities, we do take the point raised. So long as you communicate with the IRC instead of sitting on the issue and it gets worse, and they come with the garnishee notice and deduct straight from the account.
“It comes down to communication for businesses in terms of compliance.”
East New Britain Chamber of Commerce president David Stein has warned that some companies will not be able to pay their taxes because they are owed money by the government.
“The government must pay its debt first to get that money going around the economy to allow private enterprises to fulfill their tax commitment,” Stein said.
“I know of a lot of companies which are not able to pay their taxes but are owed money directly by the government.
“There will many companies going to the wall if the government does not pay its debt first.”