PNG Internal Revenue Commission Struggling To Capture Informal Economy In Tax Regime

MP also called on the commission to audit companies that claimed to record losses over the years but were still operating

By Gynnie Kero

WELLINGTON, New Zealand (Radio New Zealand International, August 22, 2017) – Capturing those in the informal economy in the tax regime remains a challenge and something the Internal Revenue Commission (IRC) is yet to deal with, according to commissioner-general Betty Palaso.

Palaso was responding to Kagua-Erave MP Wesley Raminai during the induction of MPs last Friday.
It is understood from a presentation by the IRC that any person or company doing business in the country should pay tax.

Based on that, Raminai asked about the vendors, particularly the betel nut sellers, since
it has become an industry.

He suggested that betel nut sellers pay tax like everybody else.

Raminai also called on the commission to audit companies that claimed to record losses over the years but were still operating.

Palaso said: “It’s difficult to capture everybody even if we were to send staff members into the streets to register or deal with all the traders.

“But we will work with Treasury to see how we can deal with the SME sector.

“It’s a challenging area to catch everyone in the tax net.

“In terms of companies under the Tax Act, I’m prevented from providing any details of taxpayers so I cannot say anything about that, but if there are issues or that a company is not declaring profits as it should, we do conduct audits, officers sent to the companies to obtain details and income tax act we have provisions that.”

Radio New Zealand International
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