Economic development in the Autonomous Region of Bougainville is predicted to be elevating the revenue margins after the Investment Promotion Authority (IPA) made a decision to waiver penalty fees for the reinstatement of companies from 1989 to 2015. This period was during the civil war on the island.
Acting Managing Director, Clarence Mallar Hoot, while making the announcement in Buka today (Thursday June 1, 2017) says this is a tough decision that the board has made, considering that Bougainville went through a civil war which affected business operations and the deregistered companies almost amounting to
This decision was effected as a result of awareness conducted by the Investment Promotion Authority last year in the Autonomous Region that revealed companies were deregistered due to non-compliance with the filing of Company Annual Returns.
The waiver is applicable to companies directly affected by the war. For properties and assets registered under defunct companies the legitimate directors, shareholders and aggrieved parties may apply to the Acting Registrar of Companies to exercise her powers under Sections 372 and 373 of the Act to transfer properties of defunct companies to the interested applicants.
Companies deregistered for over six years will be required to apply to the National Court for reinstatement.
Mr. Hoot said IPA has held discussions with the Internal Revenue Commission to allow companies to be exempted as well from submitting tax returns for the said period.
“And as such, the cost to since not operating has been [striken] off the list of registered entities by the registrar of companies. We are not getting them back to register list of companies,” Hoot said.
The cost of rehabilitating businesses in the Autonomous Region of Bougainville looks promising.
But IPA believes this decision will help to improve Bougainville’s internal revenue.
“It’s important these businesses are assisted, and they get back on track so that they get involved in economic activities the Autonomous Region of Bougainville so that they can contribute to taxation and also create employment opportunities for the youths,” Hoot said.
Companies have welcomed by the announcement and thanked the Investment Promotion Authority for realising the potential of business practices.
“We would like to thank IPA, the board, Mr. Hoot and the staff for giving us the reassurance and confidence to business houses to push forward our economy,” he said.
The Investment Promotion Authority is now calling on companies and business name owners to contact the IPA head Office in Port Moresby and the regional office in Buka to facilitate the reinstatement of their entities.