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4 Tips to Avoid Tax Penalties by IRC in Papua New Guinea
The Internal Revenue Commission (IRC) of Papua New Guinea (PNG) sends tax notices to all Taxpayers (Corporations, Businesses & Individuals) throughout the country as a reminder.
Penalties are applied to Goods & Services Tax (GST) returns and Salary & Wage Tax (SWT) remittances after the respective due dates.
We always encourage our clients and other businesses to comply with the notices as IRC is sometimes very strict with late lodgement and payments.
From our experiences, there are cases where the Taxpayers failed to keep a proper record or the IRC failed to properly assess the tax returns or remittances which have resulted in over-taxed or penalties heavily imposed.
The current SIGTAS system used by the IRC is an automated generated system which sometimes causes errors.
4 tips to avoid penalties by IRC
Below are tips we advise you to abide by to avoid penalties or any issues with your tax accounts:
- After lodging your tax returns or making payments, always request the IRC for an updated IRC consolidated statement of account to make sure all returns/remittances lodged and payments made are in accordance with your records.
- After lodging your tax returns/remittances or making payments, please keep file copies for your records.
- Make sure to lodge your returns or remittances and pay before the due dates.
- Always speak with your Tax Agent or Accountant an IRC officer should there be any issues. The Sooner the better, further delays may result in further problems with your tax accounts.
There have been a number of tax issues that have affected a lot of businesses both small and large enterprises in PNG because of taxpayers not keeping their records up to date or the IRC not diligently assessing the returns/remittances.
Important days to submit returns and remittance
Lodgement and payments due dates are as follows:
- GST return – 21st day of the following month
- SWT remittance – 7th day of the following month
- Corporate income tax or personal income tax returns – 30 days after the notice of assessment is issued or directed by the IRC
- Stamp duty – due on assessment
- Other withholding taxes – on the declaration
Should you have any queries or would like any assistance, please do not hesitate to contact us.
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