Tax authorities want to join global system

POLITICAL approval and support from the government is needed for tax authorities to be part of a global reporting system that counters profit-shifting by large companies.
Internal Revenue Commission commissioner-general Betty Palaso said this was to adopt Common Reporting Standard (CRS), a new guideline of automatic exchange of information between economies.
“From PNG’s perspective, we are in the process of seeking political endorsement to adopt the Common Reporting Standard and our Australian colleagues have kindly agreed to assist us in the steps necessary in implementation. This journey particularly for developing economies like PNG is not one that will happen overnight but will take time, resources, effort and commitment,” she said.
“This transparency initiative is indeed a significant milestone. Taxpayers who shift money offshore with the view of hiding it from revenue authorities will be a thing of the past.
“The broad adoption and the implementation of the Common Reporting Standard will mean that the era of bank secrecy is over. This new standard of automatic exchange of information has been agreed to by over 100 jurisdictions and continues to grow”.
Palaso was speaking at the opening of the Apec Base Erosion and Profit Sharing technical workshop in Port Moresby this week.
“Profit-shifting by multi-nationals is nothing new,” she said.
“With greater globalisation and cross-border activities, economies have become more integrated and corporations have naturally followed suit.”