Tag Archives: IRC

Income Tax Secrecy for Mining Companies Revoked

Post Courier | December 7, 2017

A landmark amendment in the 2018 National Budget has now facilitated the repealing of the secrecy provisions within the Income Tax Act of 1959.
As a result of the amendment, the Internal Revenue Commission (IRC) will be authorised to disclose mining company tax information to the PNG Extractive Industries Transparency Initiative (PNGEITI) upon request, for reporting purposes.
The amendment has been well received by the PNGEITI, who previously were required by law to seek the approval of extractive companies through waiver letters, before any tax information could be released by the IRC.
Head of the EITI National Secretariat, Lucas Alkan commended the Government for acting on amendment.
He said this was the second time the government had accommodated submissions presented to them by the EITI to streamline their reporting process.
“I am happy to say the way in which the government is working with us to arrest capacity issues for EITI implementation in PNG is encouraging.
EITI implementation is gaining footholds and we are optimistic that the intent of EITI is materialising for the good of the extractive sector in the economy” Mr Alkan said.
“Our core mandate of promoting accountability and transparency in the management of petroleum and mineral resources, by producing a yearly report on the transactions in the mining and petroleum sector.”
He said this serves as a useful tool that identifies setbacks and inconsistencies that impinge on the better translation of mineral and petroleum wealth to the larger segment of the economy.
Mr Alkan said the positive response has demonstrated an active interest by the government in promoting the transparency of the extractive industry, as one of the most dynamic contributors in the economy.
“PNGEITI’s commitment and resolve to help the Government address resource governance issues to build a strong economy remains critical and such support from the government strengthens our position in advancing our process.”

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Filed under Financial returns, Papua New Guinea

IRC raises tax concessions issue

Who is it persuades politicians to grant tax concessions without consulting relevant government departments?

Is it the mining companies directly influencing Ministers to make decisions against the national interest, disadvantaging ordinary people?

The National aka The Loggers Times | April 20, 2017

DECISIONS to grant tax concessions and incentives to resource projects should be made with the involvement of government entities and relevant organisations as well, an official says.

Internal Revenue Commission commissioner-general Betty Palaso told the meeting of department heads in Mendi, Southern Highlands yesterday that the Government should consider the other entities.

“An important factor that we can factor into preparations for the new parliament is how government deals with tax concessions and tax incentives, etc,” Palaso said.

“A lot of time, submissions go directly to Cabinet, approving certain tax concessions and incentives before coming to IRC, Department of Treasury or Papua New Guinea Customs. And we are then told to implement it.

“For example, LNG has a lot of tax incentives.

“Therefore, we have not been able to get revenue in terms of corporate income tax for a long time.

“And that is because decisions were made to allow these kind of incentives to large multi nationals.

“We have to seriously think about it. And then we have another developer in the same sector coming in to say we want the same concessions given to this particular developer given to us as well.”

Palaso said once that was done, it reduced the country’s revenue base.

“So when that is done again, the revenue base is much more reduced,” she said.

“Now we can see the impact of the reduction in the commodity prices which is now impacting on how much revenue is being generated and coming into the Government to date.”

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Filed under Corruption, Financial returns, Papua New Guinea