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Increased incidence of late payment penalties

Non-compliance no longer tolerated

Increased incidence of late payment penalties imposed by the PNG Internal Revenue Commission (IRC). The prevalence of the IRC imposing late payment penalties, especially with regard to Group Tax remittances, has increased markedly in the past few months.

We would like to make you aware of the prevalence of the IRC imposing late payment penalties, especially with regard to Group Tax remittances, has increased markedly in the past few months.

You may be aware from our previous correspondence that this situation was anticipated, given the progressive implementation this year of the new SIGTAS computer system by the IRC. We wish to highlight this situation for you and bring to your attention:

  • Penalties are being routinely imposed at a flat rate of 20% of the tax amount paid late, plus in some cases a further per annum penalty on top in proportion to the period of lateness; and
  • The majority of penalties we are seeing relate to Group Tax remittances. We therefore remind you that group tax deducted is due to be remitted to the IRC by the 7th day of the following month.
Increased incidence of late payment penalities

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Andrew Harris

Andrew Harris

Partner, Tax and Business services

Andrew has extensive experience as a tax advisor working in Australia, the United Kingdom, Uganda, Tanzania and Papua New Guinea. He has advised clients across all taxes, including international tax, ... More

Declan Mordaunt

Declan Mordaunt

Principal, Tax and Business Services

Declan is a Chartered Accountant in both New Zealand and Ireland. He has extensive experience as a tax specialist having worked in Ireland, New Zealand and the Middle East. He previously worked as a T... More