Tax in central bank: Koim

ADDITIONAL company tax (ACT) imposed on Digicel PNG by Parliament by an amendment to the Income Tax Act in March is deposited in an Escrow account at the central bank, an official says.
Internal Revenue Commission Commissioner General Sam Koim said this yesterday following announcement by Australian telecommunication company Pacific Telstra of Digicel Pacific.
“The March 2022 amendments set an ACT of K350 million on Digicel PNG,” he said.
“Digicel PNG challenged the validity of the tax in the Supreme Court and the International Centre for Settlement of Investment Disputes (ICSID), which proceedings are pending hearing and determination.
“The legal rationale for the ACT is also challenged in the PNG Supreme Court by the BSP Financial Group and the Opposition Leader Belden Namah in two separate proceedings. Given the legal challenges and the potential complications this will create, if the proceedings terminate in favour of Digicel PNG, we have created an Escrow account at the central bank to hold funds pending the outcome of the proceedings.”