In a recent statement, the Internal Revenue Commission (IRC) is now implementing means to better detect and penalize taxpayers who fail to operate and maintain an Enterprise Resource Planning (ERP) and accounting system within the tax rules.
The IRC made a strong statement to not only prosecute taxpayers but also included are those responsible for manipulating systems and making false declarations to the IRC to reduce their tax liability. This is one of many examples currently the
IRC makes clear it will deal with anyone who purposely submits false declarations or tampers with computer systems, to face prosecution under the Income Tax Act, GST Act, and the Criminal Code.
This is following a recent development made by the IRC that a major taxpayer, of which name was withheld, was deliberately evading tax and by made a false declaration to benefit from GST Credits from January 2016 to August 2019.
IRC admits this is actually the second of such nature. The other case was last year on which a taxpayer, (name withheld as well), falsely declared through manipulation, K61 Million. The party concerned was also caught and penalised.
Enterprise Resource Planning (ERP) is a software used by organizations for key operations like accounting and resource management.
The IRC is Papua New Guinea’s statutory authority by the National Government with a mandate, given to the Commissioner General under the Internal Revenue Commission Act 2014, to generate revenue through the collection of taxes under the various tax legislation administered.
