Vitis Industries pays K2.59 million in fines for tax evasion

Business
David Towe

LOCAL alcohol manufacturer Vitis Industries has paid a total of K2.59 million in fines after being issued with penalty notices by the PNG Customs Service earlier this year for engaging in excise tax evasion practices on its premises.
Customs Chief Commissioner David Towe said the penalty had been paid in full and they were now working with the company to provide tax compliance guidance and supervision.
He said this will be done until such a time Customs was satisfied that the company could be self-compliant.
“The penalties paid consists of K2.476 million for not keeping proper records and accounts for 16,506 cartons of various alcohol products and K113,850 for not keeping proper records and accounts for 759 cartons of various cigarette brands,” Towe said.
He commended Vitis Industries for their willingness to cooperate throughout the process.
“As I have stated before, our intentions are not to kill any business in the country. We are basically here to assist and to ensure everybody complies.
“We have made significant improvements and introduced reforms to our processes and procedures aimed at improving compliance and bringing in results and we will continue to do that to ensure everybody becomes accountable.
“This should also act as a warning to other manufacturers, warehouse operators and importers to refrain from engaging in tax evasion practices because the chances of you getting caught are very high now.”
A routine Customs compliance check on the Vitis premises earlier this year uncovered evidence of excise tax evasion practices by the company.

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