PNG IRC Commissioner Issues Urgent Tax Compliance Warning to Lawyers
Sam Koim, OBE, Commissioner General of the Internal Revenue Commission (IRC), has issued a critical warning to all lawyers holding Unrestricted Practising Certificates regarding tax compliance. The IRC’s latest review has uncovered several serious issues related to tax obligations within the legal profession.
 |
| PNG IRC Commissioner Issues Urgent Tax Compliance Warning to Lawyers |
The review identified several key areas of concern:
- Goods and Services Tax (GST) Issues: Many law firms have been charging GST on their invoices but failing to file and remit the GST to the IRC.
- Unreported Income: High-income principals and partners within law firms are reportedly not fulfilling their tax obligations.
- Non-Compliance by Associated Companies: Lawyers who are directors or shareholders in companies are frequently connected to entities with poor tax compliance, including inadequate reporting and payment of taxes.
- Problems with Overseas Counsel Payments: Some law firms are engaging international counsel without withholding the appropriate taxes on these payments, leading to potential tax issues.
In response to these findings, the IRC has begun a comprehensive review of law firm bank accounts to verify income streams and ensure all taxes are accurately reported and paid. The IRC has also warned that it may issue default assessments based on available information and take immediate recovery actions if necessary. Taxpayers will need to demonstrate that any such assessments are excessive.
Koim urged all legal professionals to review their tax affairs immediately and ensure they comply fully with statutory requirements. He emphasized that failure to comply not only undermines the tax system's integrity but could also jeopardize their professional standing.
For any assistance or clarification regarding tax obligations, the IRC has advised practitioners to contact their office directly.
Also read
Post a Comment