Question

One of the approaches the IRC (Internal Revenue Commission) uses to ensure compliance is data matching. What is it and how does maintaining records assist the taxpayer in complying with the requirements of the IRC? (80-120 words)

Answer 1

About Internal Revenue Commission

The Internal Revenue Commission (IRC) is responsible for the collection of most of PNG’s Tax Revenue. Although there are many revenue streams administered by IRC, the main ones are; Income Tax, Salary and Wage Tax (SWT) and Goods and Services Tax (GST).

The Internal Revenue Commission Act 2014 establishes the IRC as a Statutory Authority and the “Commission”, consisting of the Commissioner General and the Commissioners, as the governing body of the IRC. Under its enabling Act, the IRC is not a Department of the National Public Service and therefore the provisions of the Public Services (Management) Act 1995 do not apply to the IRC. The Commissioner General and the Commissioners instead draw the authority to administer and control the Commission’s functions and activities through IRC Act and other tax legislation.

Ways in which IRC helps tax payers.

1. It is developing easier ways to help tax payers as previously there used to be a lot of errors and mistakes in payments by the tax payers.
2. The IRS has launched electronic methods of tax payments.
3. IRC is introducing ONE change on the 1st June 2018. That change is to cease the acceptance of Company and Personal cheques. This payment method has been a problem for taxpayers and IRC due to cheques going missing, not being processes or being dishonoured. Most countries do not use cheques regularly and IRC would like to follow that path of modernisation.
4. The other payment methods mentioned in our notice are existing methods. They are

• IRC understands that this one change can be confusing to people so we are organising awarenesscampaigns in Port Moresby and in the Provinces.

5. IRC is also reminding taxpayers to include the following information on your electronic payment.

• EFTPOS
• Bill Pay (internet banking)
• EFT Direct Payments
• KATS Credit transfer
• Bank Cheque/Bank Draft
• TIN (Tax Identification Number)
• Tax Type. E.g. GST, CIT, SWT
• Tax Period. E.g. 04/18 for April 2018

6.Following this process will ensure your tax payment is promptly and accurately recorded by IRC and you will not be called to pay more than your fair share of taxes.