Tax crackdown

Company faces K20mil fine in customs probe

 

FOREIGN companies operating in the country that have evaded paying customs tax can be expected to be exposed and prosecuted, The National reports.

A crackdown is underway by the PNG Customs Services and already one oil company has been told it owes the state K20 million, while a mining company was forced to pay more than K1.5 million recently.

If successful, the state can expect something of a windfall in revenue from the Customs Services by the end of the year.

The oil industry company, which has not been named at this stage of its investigations, has been slapped with a bill of K20 million in outstanding duties to be settled within a deadline or face prosecution, Customs boss Gary Juffa said yesterday.

The company has also been advised to produce documents, which the company refused saying its records were kept offshore.

In a stern warning to corporate giants operating in PNG, Juffa said no one was above the law and all efforts were being made by Customs to ensure revenue due to the state of PNG and its people were paid up.

Juffa said the company was operating in PNG for the last decade and had substantial investments in PNG and abroad.

“If the company does not pay up, it faces the consequences which include refusal by Customs to clear its vessels or imports, or have its bank account garnisheed.

“If the ordinary Papua New Guinean is required to pay his taxes and duties every time he purchases a good or a service or imports or exports, then I don’t see why companies which have the means to and are obliged by law to pay their duties, avoid doing so,”  Juffa said.

The oil industry company has told Juffa it would take time to bring their documents into PNG for scrutiny.

Under Customs laws, they were required to ensure they hold all documents in relation to their business in PNG for five years.

Meanwhile, Simberi gold mine has been fined more than K700,000 for alleged failure to declare goods and evasion of customs duty.

A further K700,000 in import duty was also collected for a total of more than K1.5 million.

“The company had brought in machinery for its mine in New Ireland without declaring and paying the necessary duty until they were caught.

“Many companies in PNG that operate and reap significant profits ignore paying their duties and behave with contempt for PNG laws and its people.

“We welcome them with open arms and yet they deem it their right to ignore our laws.

“Multinational companies in PNG that import are coming under the spotlight of Customs and where they are found to have evaded duties due to the state, they will pay with heavy penalties,” Juffa said.

He also said an expatriate working at the Mineral Resources Authority, who attempted to interfere with Customs was under investigations, and could be prosecuted.

“He is employed by the state and is to maintain state’s interests and the interests of the people of PNG and not lobby for companies that err and fail to respect our laws,” Juffa said.