Tax office embarks on major reforms

By GYNNIE KERO
THE Internal Revenue Commission (IRC) has embarked on major reforms aimed at modernising and streamlining the administration of taxes, according to Commissioner-General Betty Palaso.
She said this at the launching of IRC’s five-year corporate plan at the Gateway Hotel on Tuesday.
Palaso said the corporate plan 2013-17 would provide clear directions for operating and developing the IRC, consistent with government’s direction, over the next five years.
“The plan aims to transform IRC into a modern tax administration and a model public sector agency,”
she said.
“To measure our performance against the plan, we will use external benchmarks including the Pacific Islands tax administration base line assessment frame.
“We will also be measured by our ability to meet all government reporting and compliance expectations.”
Continuing on from the previous plan, Palaso said, IRC’s core business processes and systems were being overhauled through delivery of the new revenue accounting system (RAS 2).
“This has been a complex and demanding process and the system has to be developed and configured to accommodate PNG’s complex tax environment,” she said.
“Nevertheless, we are planning to progressively reduce this new capability this year, with full functionality expected in 2014.
“This exciting project will bring with a new level of service delivery including electronic submission of tax returns and assessments and the ability to electronically transfer funds between IRC and taxpayers.”
The plan identifies four strategic themes which include tax administration and revenue generation, leadership and governance, people and training and core enabling functions.