Tuke: There is tax erosion in sector

GOVERNMENT organisations and agencies in the area of mineral tax generation do not share information, Mining Minister Johnson Tuke says.
Tuke said this had resulted in the lack of coordination among the concerned agencies to ensure there was proper collection of revenue.
The minister said like other sectors of the economy, there was a prevalence of tax base erosion and profit shifting in the mining sector.
“Analysis of data revealed significant departure of taxes paid by mining companies, and possibly indicate prevalence of tax base erosion and profit shifting in PNG,” he said.
Speaking during the launch of mining audit programmes and a mine closure and rehabilitation plan in Port Moresby on Friday, Tuke said the Government, through the Mining and Treasury ministires had endorsed its participation in a three-year base erosion and profit shifting (BEPS) technical assistance programme funded by the Intergovernmental Forum (IGF) and Organisation for Economic Co-operation and Development (DECD).
“The programme addresses significant gaps in existing national and international tax rules, commonly exploited by multinational corporations and at the same time provides guidance or governments to address tax planning and avoidance in mining project contract negotiations and agreements,” he said.