Port Moresby (file image) Photo: RNZ Pacific / Johnny Blades
The Internal Revenue Commission (IRC) of Papua New Guinea has strongly opposed a recent proposal by the International Monetary Fund (IMF) to establish an "Oversight Board" that would supervise its tax administration and enforcement.
IRC commissioner general Sam Koim called the move unwarranted and a threat to the independence and integrity of the nation's tax authority.
In a statement, Koim stressed that the IRC is an independent statutory authority governed by the Internal Revenue Commission Act 2014, with robust internal and external accountability mechanisms already in place.
He argued that no sound policy justification had been provided by the IMF to support the proposed oversight.
"Accountability is critical to good governance, and I support it wholeheartedly. But where is the evidence that our current mechanisms are failing or that there has been a breakdown in performance? None has been presented," Koim said.
The IRC has undergone significant reforms in recent years, transforming into a modern and efficient institution.
Its revenue collection more than doubled from K8 billion in 2020 to nearly K17 billion last year, underscoring its effectiveness.
Koim questioned why an already high-performing institution would need such a structural intervention and hinted at ulterior motives behind the IMF's push.
The timing of the proposal has added to these concerns. Koim noted that it coincided with the IRC's ongoing audits of major multinational corporations that had not previously been scrutinised.
He suggested that the push for an oversight board could undermine these investigations and disrupt the IRC's independent mandate.
The proposal also raised issues of sovereignty.
Koim criticised the IMF for seemingly leveraging its financial support to force structural reforms, urging it to respect the independence of Papua New Guinea's institutions.
He emphasised the importance of evidence-based and transparent discussions on reforms, rather than attaching them to loan conditions.
Prime Minister James Marape has also rejected the proposal, according to Koim, signaling strong political backing for the IRC's stance.
Koim concluded with a call to protect the integrity of the IRC, stating, "This institution is built on independence, and it must not be compromised by unnecessary external interference."
