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Income Tax Regulation 1959


Unvalidated References:
Income Tax Act 1959
Income Tax Regulation 1959
Income Tax Act 1959
Organic Law on Provincial Governments and Local-level Governments
Income Tax Act 1959
Fisheries Management Act 1998
Income Tax Act 1959
Central Banking Act 2000
Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984
Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984
Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984
Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984
Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Income Tax (Salary or Wages Tax) (Rates) Act 1979
Public Hospitals (Charges) Regulation 1956

This reprint of this Statutory Instrument incorporates all amendments, if any, made before25 November 2006 and in force at  1 January 2005.


.........
Legislative Counsel
Dated 25 November 2006


INDEPENDENT STATE OF PAPUA NEW GUINEA.

No. of 1959.

Income Tax Regulation 1959

ARRANGEMENT OF SECTIONS.

Subdivision A – Rate of deduction from salary or wages.

Subdivision B – Group Employers.

Income Tax Regulation 1959

MADE under the Income Tax Act 1959.


Dated                   200 .


PART I. – PRELIMINARY.

  1. CITATION.

This Regulation may be cited as the Income Tax Regulation 1959.

  1. [1][REPEALED.]
  2. INTERPRETATION.

(1) In this Regulation–

“prescribed delegate of the Commissioner General” means a person appointed by the Commissioner General under Section 93 to be a prescribed delegate of the Commissioner General for the purposes of this Regulation;

“the Act” means the Income Tax Act 1959.

(2) In this Regulation a reference to a Form by number shall be read as a reference to a Form so numbered in the First Schedule to this Regulation.

3A. ANCILLARY ACTIVITIES TO MINING OPERATIONS.

For the purposes of the definition of “mining activities” in Section 4(1) of the Act, the construction of the mine access road from Kiunga to Tabubil by the North Fly Highway Development Company Proprietary Limited is an ancillary activity.

PART II. – ADMINISTRATION.

  1. OATH OR DECLARATION BY OFFICERS.

An oath or declaration for the purposes of Section 9(7) of the Act shall be in accordance with Form 1 or Form 2, as the case may be.

PART III. – LIABILITY TO TAXATION.

  1. NON-COMMERCIAL REVENUE PRESCRIBED FOR THE PURPOSES OF SECTION 24(2) OF THE ACT.

For the purposes of Section 24(2) of the Act–

(a) in the case of a Provincial Government–that revenue that constitutes finances of the province described in Section 82(a), (b), (c) and (d) of the Organic Law on Provincial Governments and Local-level Governments; and

(b) in the case of a local government body or local level government body–that revenue that is substantially analogous to that referred to in Paragraph (a),

is prescribed non-commercial revenue.

5A. PUBLIC AUTHORITIES PRESCRIBED FOR THE PURPOSES OF SECTION 65A OF THE ACT.

For the purposes of Paragraph (e) of the definition of “Public Service” in Section 65A of the Act, the following bodies are prescribed public authorities:–

(a)[2] [Repealed.]

(b) Cocoa Industry Board of Papua New Guinea;

(c) Copra Marketing Board of Papua New Guinea;

(d) National Housing Corporation;

(e) Magisterial Service;

(f) National Broadcasting Corporation;

(g) Investment Promotion Authority;

(h) National Parks Board;

(i) Papua New Guinea Coffee Industry Corporation;

(j)[3] [Repealed.]

(k) Papua New Guinea Harbours Board;

(l) The Service of the Ombudsman Commission;

(m) Forest Industries Council of Papua New Guinea;

(n) Islands Regional Secretariat;

(o) National Cultural Council;

(p) Legal Training Institute;

(q) Post and Telecommunication Corporation [repealed];

(r) Southern Highlands Management Authority;

(s) National Capital District Commission.

5B. PUBLIC AUTHORITIES PRESCRIBED FOR THE PURPOSES OF SECTION 24(1) OF THE ACT.

For the purposes of Section 24(1) of the Act the following public authorities are liable to pay income tax on income derived:–

(a) on and after 1 January 1979–

(i)[4] [Repealed.]

(ii) Papua New Guinea Harbours Board; and

(iii) Papua New Guinea Banking Corporation; and

(iv) Niugini Insurance Corporation;

(b) on and after 1 January 1981–

(i) Papua New Guinea Defence Force Retirement Benefit Fund; and

(ii) Papua New Guinea Retirement Benefits Fund; and

(iii) Public Officers Superannuation Fund; and

(iv) National Provident Fund;

(c) on and after 1 January 1984–Post and Telecommunication Corporation of Papua New Guinea;

(d) on and after 1 January 1985–Investment Corporation of Papua New Guinea in respect of income derived by the Corporation in its own right;

(e) on or after 1 January 1990–Investment Corporation of Papua New Guinea in respect of income derived by the Investment Corporation Fund;

(f) on and after 1 January 1991– State Services and Statutory Authorities Superannuation Fund.

5C. CHARITABLE BODIES OR INSTITUTIONS PRESCRIBED FOR THE PURPOSES OF SECTION 25A OF THE ACT.

For the purpose of Section 25A of the Act, the following bodies are prescribed charitable institutions:–

(a) from 1 January 1980–

(i) APEX Papua New Guinea;

(ii) Alliance Training Ltd;

(iii) Boys Town–Wewak;

(iv) Cheshire Homes;

(v) JF Leahy Trust;

(vi) Kambang Holdings Ltd;

(vii) Koki Everyman’s Hut;

(viii) Life Line;

(ix) Lions Clubs;

(x) National St. John Council of Papua New Guinea and its Foundations;

(xi) Pasuwe Ltd;

(xii) PNG Mentally Retarded Children’s Association;

(xiii) Port Moresby Community Development Group;

(xiv) Port Moresby Sheltered Workshop Assoc. Inc;

(xv) Red Cross;

(xvi) Rotary Clubs of PNG;

(xvii) YMCA Youth Clubs;

(b) from 1 January 1982–

(i) Ayaho Community Services Pty Ltd;

(ii) Bougainville Copper Foundation (formerly Panguna Development Foundation);

(c) from 1 January 1984–

(i) YWCA;

(ii) Boroko Sub-branch of the Returned Services League of Australia;

(iii) Motu-Koitabu Trust;

(iv) The Melanesian Awareness Foundation;

(v) Voluntary Service Overseas Trust Fund Papua New Guinea;

(d) from 1 January 1987–

(i) Michael Somare Foundation Limited;

(ii) University of Papua New Guinea Foundation;

(iii) The Research and Conservation Foundation of Papua New Guinea Limited;

(iv) Stack West Sepik Trust;

(v) Community Crime Prevention Trust;

(vi) Independence Fellowship Trust;

(vii) The Melanesian Awareness Foundation;

(e) from 1 January 1990–

(i) KKB Foundation;

(ii) Lower OK Tedi/Fly River Development Trust;

(iii) Western Highlands Association for the Disabled;

(iv) Kainantu Education Trust.

(f) from 1 January 1993–

(i) The Melanesian Environment Foundation;

(ii) The National Heart Foundation of Papua New Guinea Inc. (formerly the Hagen Heart Foundation Inc).

(g) 1 January 1994–

(i) The RSL Memorial Education Trust.

(h) from 1 January 1994–

(i) Islamic Society of Papua New Guinea;

(ii) Mt Sion Centre for the Blind;

(iii) National Cultural Committee;

(iv) Port Moresby City Mission;

(v) Royal Papua New Guinea Constabulary Legacy;

(vi) Sir Buri Kidu Heart Institute Inc.

(i) from 1 January 1996–

(i) Callan Services for Disabled Persons;

(ii) Kurumul Association of Self Help Groups;

(iii) Life Outreach Ministries;

(iv) Masonic Charitable Trusts.

(j) from 1 January 1997–

(i) Alice River Trust Foundation for Rural Development Trust

(ii) Milne Bay Emergencies Fund-Raising Association Inc.

(iii) New Britain Palm Oil Limited Carry Share Trust

(iv) New Britain Palm Oil Limited Free Share Trust.

(k) from January 1999–

(i) Conservation Melanesia Incorporated;

(ii) Womens’ Federation for World Peace;

(iii) Family Federation for World Peace Unification;

(iv) Hope Worldwide (PNG) Incorporated;

(v) Ling Stuckey Foundation;

(vi) Misima Trust Fund;

(vii) Development Foundation Limited;

(viii) Papua New Guinea Conservation Trust Fund;

(ix) New Britain Palm Oil Foundation Pty Ltd.

5D[5]. [REPEALED.]

5E. TECHNICAL ASSISTANCE AGREEMENTS PRESCRIBED FOR THE PURPOSES OF SECTION 22 OF THE ACT.

For the purpose of Section 22 of the Act, the following agreement is a prescribed technical assistance agreement:–

“Technical Co-operation Agreement between the Government of the Federal Republic of Germany and the Government of Papua New Guinea–1980.”

5F. PRESCRIBED BENEFIT.

(1) Subject to this section, for the purposes of Section 46B, 47(1)(d) and 47B of the Act the prescribed sum is attained by application of the following formula:–

(a) where the employee has contributed to an approved superannuation fund for less than 5 years–prescribed sum = compound interest not exceeding 5% per annum on the employee’s contribution plus the employer’s contribution allowed as a deduction by virtue of Section 88 of the Act, plus any amount which would have been deductible but for the operation of Section 88(1A) of the Act; and

(b) where the employee has contributed to an approved superannuation fund for five years or more, the prescribed sum = (factor - 1) x employee’s contribution + factor x (by the employers contribution allowed as a deduction by virtue of Section 88 of the Act plus any amount which would have been deductible but for the operation of Section 88(1A) of the Act),

where the factor is taken from the following table:–

YEARS OF CONTRIBUTION
FACTOR
5 but not more than 10
1.75
10 but not more than 15
2.5
15 but not more than 20
3.25
20 but not more than 25
4.0
25 but not more than 30
4.75
30 but not more than 35
5.5
more than 35
6.25

(2) The formula contained in Subsections (1) and (6) does not apply to a distribution from a superannuation fund made as a result of the death or permanent disablement of a taxpayer, or made to an employee where the employer is exempt from income tax under any provision of the Act or of any other Act.

(3) The prescribed sum in cases to which Subsection (2) applies shall equal the amount actually paid less the employee’s own contribution.

(4) The formula contained in Subsection (1) does not apply to a distribution from a superannuation fund not paid in consequence of death, permanent disablement, retirement from or the termination of, an office or employment.

(5) The prescribed sum in cases referred to in Subsection (4) shall be nil.

(6) For the purposes of Section 46B(2A) of the Act, where the employee has contributed to an approved fund, the prescribed sum = (factor - 1) x employee’s contribution + factor x (employer’s contribution allowed as a deduction by virtue of Section 88 of the Act plus any amount which would have been deductible but for the operation of Section 88(1A) of the Act), where the factor is taken from the Table in Subsection (1).

(7) In considering whether a payment from a superannuation fund satisfies the requirements of Section 46B(2A) of the Act, account shall be taken of any transfer of contributions to another fund which may have occurred during the period of contribution.

5G. PERSONAL EXPENDITURE PRESCRIBED FOR THE PURPOSES OF THE DEFINITION OF “HOUSING EXPENDITURE” IN SECTION 4(1).

For the purposes of the definition of “housing expenditure” in Section 4 of the Act, the following classes of expenditure are prescribed expenditure of a personal nature:–amounts paid for–

(a) electricity; or

(b) water, including excess water rates; or

(c) domestic servants, gardeners, cleaners, security staff and other similar employees; or

(d) travelling expenses to or from the property; or

(e) telephone and telex services; or

(f) entertainment; or

(g) repairs to and replacement of household items not being fittings; or

(h) connection to or rental of pay TV facilities; or

(i) depreciation on household items (other than fixtures and fittings).

5H. CONDITIONS PRESCRIBED FOR THE PURPOSES OF SUBPARAGRAPH (B)(IV) OF THE DEFINITION OF “UNIT TRUST” [AND PROPERTY UNIT TRUST] IN SECTION 4(1).

For the purposes of Subparagraph (b)(iv) of the definition of unit trust and Subparagraph (b)(v) of the definition of property unit trust in Section 4(1) of the Act, the following conditions are prescribed:–

(1) Subject to Condition 2, a trust shall be deemed not to be a unit trust if–

(a) at any time during the year of income–

(i) 25 or less persons in number held or had the right to acquire or become the holders of, a unit or units in the unit trust that entitled the holders thereof to more than 75% of–

(A) the beneficial interests in the income of the unit trust; or

(B) the beneficial interests in the property of the unit trust; or

(ii) any one person held or had the right to acquire or became the holder of, a unit or units in the unit trust that entitled the holder thereof to more than 20% of–

(A) the beneficial interests in the income of the unit trust; or

(B) the beneficial interests in the property of the unit trust; or

(iii) more than 75% of the total of moneys paid or credited by the trustee of the unit trust during the year of income was paid or credited to 24 or less in number of persons as unit holders; or

(iv) more than 20% of the total of moneys paid or credited by the trustee of the unit trust during the year of income was paid or credited to any one person as unit holder; or

(b) the Commissioner General is of the opinion that by reason of–

(i) any provision in the instrument by which the trust was created, or any contract, agreement or instrument authorizing the variation of rights attaching to any of the units or relating to the conversion, cancellation, extinguishment or redemption of such units; or

(ii) any contract, agreement, option or instrument under which a person has power to acquire a unit or units in the unit trust; or

(iii) any power, authority, or discretion in a person in relation to the rights attaching to any of the units in the unit in the unit trust,

the rights attaching to any of the units in the unit trust were capable of being varied or abrogated in such a manner (notwithstanding that they were not in fact varied or abrogated in that manner) that the disqualifying conditions in Subparagraph (a) could have arisen.

(2) Where by virtue of Condition (1) a trust would, but for this condition, be deemed not to be a unit trust and the Commissioner General is of the opinion that, having regard to–

(a) the length of period, or the aggregate of the lengths of periods the trust failed to comply with the conditions set out in Condition (1); or

(b) any other matters the Commissioner General considers relevant,

it is reasonable that the trust should be treated as a unit trust, the trust shall notwithstanding Condition (1) be deemed to be a unit trust in relation to that year of income.

(3) A trust shall be deemed not to be a unit trust unless the units in the trust were held by not fewer than 50 persons and–

(a) the units of the trust were listed for quotation in the official list of a stock exchange; or

(b) the units in the unit trust were offered to the public.

For the purposes of this Condition units in a unit trust shall be taken to be offered to the public only if–

(c) an offer is made to the public in Papua New Guinea to subscribe for or purchase the units; or

(d) an invitation is issued to the public in Papua New Guinea to make offers to subscribe for or purchase the units.

Note For the purposes of all the foregoing Conditions–

(a) a person, whether or not he holds units in the unit trust concerned; and

(b) his relatives; and

(c) in relation to any units in respect of which they are nominees, his nominees and the nominees of any of his relatives,

shall be deemed to be one person.

5I. SUPERANNUATION FUNDS PRESCRIBED FOR THE PURPOSES OF PARAGRAPH (A)(III) OF THE DEFINITION OF “RESIDENT” IN SECTION 4(1) OF THE ACT.

For the purposes of Paragraph (a)(iii) of the definition of “resident” in Section 4(1) of the Act, the following are prescribed superannuation funds:–

(a) Public Officers Superannuation Fund;

(b) Defence Force Retirement Benefits Fund.

5J. LANDOWNER RESOURCE TRUSTS FOR THE PURPOSES OF SECTION 137 OF THE ACT.

The following bodies are prescribed landowner resource trusts:–

(a) from 1 January 1996–

The Western Province General Compensation Trust.

  1. ORGANIZATIONS PRESCRIBED FOR PURPOSES OF SECTION 39.

(1) For the purposes of Section 39(1) of the Act, the following organizations are prescribed organizations:–

(a) United Nations;

(b) Food and Agriculture Organization of the United Nations;

(c) Intergovernmental Committee for European Migration;

(d) Interim Commission for the International Trade Organization;

(e) International Bank for Reconstruction and Development;

(f) International Monetary Fund;

(g) International Civil Aviation Organization;

(h) International Labour Organization;

(i) International Telecommunication Union;

(j) South Pacific Commission;

(k) United Nations Educational, Scientific and Cultural Organization;

(l) Universal Postal Union;

(m) World Health Organization;

(n) World Meteorological Organization;

(o) International Development Association;

(p) Economic Commission for Asia and the Far East.

(2) For the purposes of Section 39(2) of the Act, the organizations specified in Subsection (1) and the International Finance Corporation are prescribed organizations, and the official salary and emoluments of an official of such an organization are, in accordance with that subsection, exempt from income tax–

(a) in the case of an official of the United Nations–to the extent that the State is bound by an international convention or agreement to exempt from taxation his official salary and emoluments; and

(b) in the case of an official of any other organization specified in Subsection (1) or the International Finance Corporation, being an official and who came to Papua New Guinea solely for the purpose of performing his official duties–to the extent that the official salary and emoluments are for services rendered in Papua New Guinea; and

(c) in the case of an official of an organization specified in Subsection (1)(d), (e), (f), (g), (j), (o) or (p) or the International Finance Corporation, being an official who is a resident of Papua New Guinea and who is appointed for service out of Papua New Guinea with that organization–to the extent that the official salary and emoluments are for services rendered out of Papua New Guinea.

6AA. INDUSTRIES AND RURAL AREAS PRESCRIBED FOR THE PURPOSES OF DIVISION III.1B.

(1) For the purposes of Division III.1B the following industries are rural development industries:–

(a) agricultural production, being production resulting directly from–

(i) the cultivation of land; or

(ii) the maintenance of animals or poultry for the purpose of selling them or their bodily produce,

including natural increase and includes the processing of vegetable and animal raw material produced by the cultivation of land or the maintenance of animals or poultry by the person who produced the raw material used in that manufacture;

(b) commercial activities falling within major Tabulation Categories of the International Standard Industrial Classification of all Economic Activities published in 1990 under Revision 3–

(i) Tabulation Category D–Manufacturing; and

(ii) Tabulation Category F–Construction; and

(iii) Tabulation Category H–Hotels and Restaurants; and

(iv) Tabulation Category I–Transport, Storage and Communication; and

(v) Tabulation Category J–Financial intermediation; and

(vi) Tabulation Category K–Real estate, renting and business activities; and

(vii) Tabulation Category O–Other Community, Social and Personal Service Activities.

(2) For the purposes of Division III.1B the following districts are rural development areas––

DISTRICT
PROVINCE
Amanab
West Sepik
Ambunti
East Sepik
Angoram
East Sepik
Bogia
Madang
Finschhafen
Morobe
Goilala
Central
Gumine
Simbu
Henganofi
Eastern Highlands
Ialibu
Southern Highlands
Jimi
Western Highlands
Kabwum
Morobe
Kagua
Southern Highlands
Kaiapit
Morobe
Kaintiba
Gulf
Kandep
Enga
Kandrian
West New Britain
Karimui
Simbu
Kikori
Gulf
Koroba
Southern Highlands
Lagaip
Enga
Lake Murray
Western
Losuia
Milne Bay
Lufa
Eastern Highlands
Lumi
West Sepik
Maprik
East Sepik
Menyamya
Morobe
Mumeng
Morobe
Nipa
Southern Highlands
Nuku
West Sepik
Okapa
Eastern Highlands
Pangia
Southern Highlands
Pomio
East New Britain
Rabaraba
Milne Bay
Rai Coast
Madang
Ramu
Madang
Tambul
Western Highlands
Tari
Southern Highlands
Telefomin
West Sepik
Wabag
Enga
Wapenamanda
Enga
Wonenara
Eastern Highlands

6A. ORGANIZATIONS PRESCRIBED FOR PURPOSES OF SECTION 19C.

For the purposes of Section 19C of the Act, the following organizations are prescribed aid organizations:–

(a) Habitat for Humanity Inc.

6B[6]. [REPEALED.]

  1. PRESCRIBED LIFE TABLES FOR PURPOSES OF SECTION 49.

For the purposes of Section 49(2)(a) of the Act, the Australian Life Tables, 1953-1955, published by the Australian Statistician are the prescribed Life Tables.

  1. LIVE STOCK.

(1) The option that may be exercised in pursuance of Section 54, and the selection that may be made in pursuance of Section 56(1)(b), of the Act may be notified on the return of the taxpayer or by a separate notification in writing signed by the taxpayer, which may be in accordance with Form 3 or Form 4, as the case requires.

(2) The separate notification shall be delivered to the Commissioner General at his office at Port Moresby on or before the date of the furnishing or the first return in which the value of live stock is taken into account or within such extended time as the Commissioner General allows for the exercise of the option, or the making of the selection, as the case may be.

(3) For the purposes of Section 56(1)(b) of the Act, the minimum cost price in respect of live stock of a class specified in the following table is the price specified in that table opposite to that class:–


K
toea
Sheep
40
Cattle
2
Horses
2
Pigs
50
  1. AGREEMENT BY TRUSTEE AND BENEFICIARIES.

A notice of agreement given for the purposes of Section 59(3)(b) of the Act shall be in writing, signed by the trustee of the estate of the deceased and the beneficiaries (if any) who are liable to be assessed in respect of the income of the business, or of a share in that income, and shall be given to the Commissioner General at his office at Port Moresby on or before the date of the furnishing of the first return by the trustee of the estate of the deceased or within such extended time as the Commissioner General allows for the giving of that notice of agreement.

9A. VALUATION OF CERTAIN BENEFITS.

For the purposes of Section 65E(1) or 196Y of the Act, the valuation of the benefit provided to an employee in respect of the classification of such benefits specified hereunder is–

(1) Provision of Housing (Sections 65E(1)(f) and (g)).

TYPE OF HOUSING
VALUE OF TAXABLE BENEFIT PER FORTNIGHT

AREA 1
AREA 2
AREA 3
HIGH COST house or flat
K180.00
K125.00
K0.00
MEDIUM COST house or flat
K105.00
K80.00
K0.00
LOW COST house or flat
K45.00
K40.00
K0.00
MESS/BARRACKS accommodation
K45.00
K40.00
K0.00
GOVERNMENT MESS/BARRACKS accommodation
K5.00
K5.00
K0.00
EMPLOYEES in approved LOW COST housing scheme
K0.00
K0.00
K0.00

(i) Employees provided with accommodation outside Papua New Guinea by their employer are deemed to reside in Area 1, and are subject to tax on the taxable benefit value for private high cost housing.

(ii) Low cost housing in relation to employer owned accommodation is any unit of accommodation which would fetch K75,000 or less if sold on the open market, and in any other case is any unit of accommodation whose market rental is K250 per week or less.

(iii) Medium cost housing in relation to employer owned accommodation is any unit of housing which would fetch between K75,000 and K175,000 if sold on the open market, and in any other case is any unit of accommodation whose market rental is between K250 and K750 per week.

(iv) High cost housing in relation to employer owned accommodation is any unit of accommodation which would fetch K175,000 or more if sold on the open market, and in any other case is any unit of accommodation whose market rental is K750 per week or more.

(v) Area 1 or 2 in the table is any area located in, or within 15 kilometres radius of the boundaries of, any of the following towns:–

Area 1
Goroka, Lae, Madang, Mount Hagen and Port Moresby; and
Area 2
Alotau, Bulolo, Bwagaoia, Daru, Kainantu, Kavieng, Kerema, Kimbe, Kiunga, Kundiawa, Lorengau, Mendi, Popondetta, Porgera, Rabaul, Tabubil, Vanimo, Wabag, Wau and Wewak; and
Area 3
is any place in Papua New Guinea not included in Area 1 or 2.

(2) Provision of housing allowance (paid in lieu of accommodation)–

(a) when given to the employee under an approved Low Cost Housing Scheme–Nil; and

(b) when given to the employee in respect of housing occupied by him–the amount of housing allowance in so far as it exceeds housing expenditure and the prescribed value of that housing as if the housing was provided directly to him by the employer; and

(c) in all other cases–the amount of housing allowance.

(3) Motor Vehicle.

(a) where the vehicle is provided by the employer and the employee has unrestricted use–

(i) with fuel K100 per fortnight

(i) without fuel K75 per fortnight

(b) where the vehicle is provided by the employer and the employee has restricted use such value as determined by the Commissioner General in each case, otherwise the values in (a) above apply.

(4) Meals.

Messing type meals
K30.00 per fortnight
All other meals provided are subject to tax on the amount equal to the cost to the employer.

(5) Entertainment Fringe Benefit. – Entertainment allowance paid to an employee is taxable in full.

Note 1 Business entertainment by a taxpayer is no longer deductible (non-business entertainment by a taxpayer has never been deductible).

Note 2 Where an employee partakes and incurs business entertainment expenditure on behalf or on account of his employer the reimbursement to him by the employer of the actual expenditure is not taxable to the employee and the employee’s benefit from the partaking in that entertainment is valued at nil.

Note 3 Where an employee partakes and incurs non-business entertainment expenditure on behalf or on account of his employer the reimbursement to him by the employer of the actual expenditure is not taxable to the employee but the employee’s benefit from the partaking in that entertainment is valued at pro rata cost of the entertainment.

(6) Club Subscription or Fees, Domestic and Security Services, Electricity and Gas.

(a) Allowances paid to an employee in respect of these expenditures are taxable in full.

(b) Where an employee incurs any of these expenditures on behalf or on account of his employer the reimbursement to him by the employer of the actual expenditure is not taxable.

(7) [Repealed.]

(8) In respect of benefits under Section 65E(1)(k) of the Act, the lesser of, 50% of the standard economy fare for each leg for which discount is received, or the actual value of discount provided.

9AA[7]. [REPEALED.]

9B. PLACES OF TERTIARY EDUCATION PRESCRIBED FOR THE PURPOSES OF SECTIONS 72A(2)(B)(II) AND 196Y(B)(III), (D)(III) AND (E)(III) OF THE ACT.

For the purposes of Section 72A(2)(b)(ii) and 196Y(b)(iii), (d)(iii) and (e)(iii) of the Act the following are prescribed as places of tertiary education:–

Name of Institution
Location
Australian Administrative Staff College
Mt. Eliza, Victoria
Australian Institute of Management
Brisbane, Queensland
Australian Maritime College
Launceston, Tasmania
Australian National University
Canberra, ACT
Australian School of Nuclear Technology
Lucas Heights, NSW
Bond University
Gold Coast, Queensland
Bougainville Copper Limited Mine Training College
Panguna
British Telecom Training College
Staffordshire, United Kingdom
Cable and Wireless Telecommunications College
Porthcurno, United Kingdom
Canberra College of Advanced Education
Canberra, ACT
Capricornia Institute
Rockhampton, Queensland
Chisholm Institute of Technology
Caulfield, Victoria
College of Allied Health Sciences
Madang
College of External Studies
Redfern, NSW
Curtin University
Perth, Western Australia
Darling Downs Institute of Advanced Education
Toowoomba, Queensland
Darwin Institute of Advanced Education
Darwin, Northern Territory
Deakin University
Geelong, Victoria
Divine Word University
Madang
Essex Institute of Higher Education
Chelmsford, United Kingdom
Flinders University
Adelaide, South Australia
Footscray Institute of Technology
Footscray, Victoria
Gippsland Institute of Advanced Education
Churchill, Victoria
Goroka Technical College

Griffith University
Brisbane, Queensland
Hawkesbury Agricultural College
Richmond, NSW
Hawthorne Institute
Victoria
Industrial Foundation for Accident Prevention
Sydney, NSW
International Training Institute
Sydney, NSW
James Cook University
Townsville, Queensland
Kuring-gai College of Advanced Education
Sydney, NSW
Lae Technical College
Lae
Macquarie University
Sydney, NSW
Madang College of Allied Health Services

Melbourne College of Advanced Education
Melbourne, Victoria
Middlesex Polytechnic
Middlesex, United Kingdom
Mitchell College of Advanced Education
Bathurst, NSW
Monash University
Melbourne, Victoria
Mt. Hagen Highlands Agricultural College

Mt. Hagen Technical College

Murdoch University
Murdoch, Western Australia
Murray State University
Kentucky, USA
Nepean College of Advanced Education
Sydney, NSW
NSW Institute of Technology
Sydney, NSW
NSW TAFE Colleges
NSW
Orange Agriculture College
Orange, NSW
Pacific Adventist University

Papua New Guinea Institute of Bankers
Port Moresby
Papua New Guinea University of Technology
Lae
PNG Bankers College

PNG Civil Aviation Training College

PNG Correctional Service Training College

PNG Elcom Training College

PNG Fire Services Training College

PNG Fisheries Training College

PNG Forestry Training College

PNG Institute of Public Administration

PNG Legal Training Institute
Port Moresby
PNG Maritime Training College
Madang
PNG Police Training College

PNG PTC Training College

PNG University of Technology

POM College of Allied Health Science

Popondetta Agricultural College
Popondetta
Port Moresby Business College
Port Moresby
Port Moresby Technical College
Port Moresby
Post and Telecommunication Training College
Lae
Power Human Resources Development
Ingleside, NSW
Queensland Agriculture College
Laws, Queensland
Queensland Institute of Technology
Brisbane, Queensland
Queensland TAFE Colleges
Queensland, Australia
Rabaul Business College

Riverina College of Advanced Education
Wagga Wagga, NSW
Roseworthy Agriculture College
Adelaide, South Australia
Royal Melbourne Institute of Technology
Melbourne, Victoria
South Australian College of Advanced Education
Adelaide, South Australia
South Australian Institute of Technology
Adelaide, South Australia
Swinburne Institute of Technology
Melbourne, Victoria
Tasmanian College of Advanced Education
Launceston, Tasmania
Timber Industry Training College

University of Adelaide
Adelaide, South Australia
University of Goroka
Goroka
University of Hull
Hull, United Kingdom
University of London
London, United Kingdom
University of Melbourne
Melbourne, Victoria
University of New England
Armidale, NSW
University of New South Wales
Sydney, NSW
University of Newcastle
Newcastle, NSW
University of Papua New Guinea
Port Moresby
University of Queensland
Brisbane, Queensland
University of Sydney
Sydney, NSW
University of Tasmania
Hobart, Tasmania
University of Vudal
Kerevat
University of Western Australia
Perth, Western Australia
University of Wollongong
Wollongong, NSW
Victorian College of Agriculture and Horticulture
Melbourne, Victoria
Warnambool Institute of Advanced Education
Warnambool, Victoria
Western Australian Institute of Technology
Perth, Western Australia
Western Australian School of Mines
Kalgoorlie, Western Australia
  1. IMPROVEMENTS ON LEASED LAND.

For the purposes of Section 117(4)(b) of the Act, the prescribed rate of interest is 5% per annum, and the instalments referred to in that paragraph may be calculated by reference to the Table in Schedule 2.

10A. QUALIFYING GOODS PRESCRIBED FOR THE PURPOSES OF DIVISION III.1A OF THE ACT.

For the purposes of Division III.1A of the Act, the goods specified in this section, or included in a class of the goods so specified, are prescribed qualifying goods–

Activated carbon
Artifacts
Beverages ready for consumption
Biscuits
Canned fruit and vegetables
Canned, loined and smoked fish
Cement and concrete products
Ceramics
Chopsticks
Cigarettes
Clothing and manufactured textiles
Confectionery
Dairy products
Dry cell batteries
Electrical appliances
Essential oils/oleoresins
Fabricated steel
Fibreglass products
Fishing nets
Flexible packaging materials
Flour
Foam products
Founded and manufactured metal products
Glass products
Hand tools
Industrial and medical gases
Instant coffee
Instant full cream milk
Instant noodles
Jewellery
Livestock feeds
Matches
Motor vehicles
Non-dairy creamer
Paint
Paper products
Plastic products
Powdered cocoa beverages
Powdered coconut milk
Processed and canned meat products
Processed ginger
Refined petroleum
Rubber products
Sawn timber, mouldings, plywood and laminated products
Ship and boat building and repairing
Soap
Treated and processed Crocodile skins
Wood pulp
Wooden furniture components and doors

10B. PRIME RATE.

For the purposes of Section 163Z(5) of the Act the Prime Rate in the United States of America for a year of income shall be the “Lending Rate (Prime Rate)” published in the “International Financial Statistics” by the International Monetary Fund for that year.

10C. BUSINESS INCOME PAYMENT FOR THE PURPOSES OF DIVISION VI.2 OF THE ACT.

A payment is a business income payment within the meaning of Division VI.2 of the Act, where it is made or is liable to be made under a contract which in whole or in part is for the carrying out of or the provision of work involving any of the following activities:–

(a) the construction, erection, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of any structure, roadworks or thoroughfare and, without limiting the generality of the foregoing, applies to–

(i) the painting, decorating, proofing or other treatment of the internal or external surfaces of any structure other than signwriting or the production of murals or other similar works; and

(ii) the installation in, or the fixing or fitting in or to, any structure of–

(A) a system of, or device for, heating, cooking, refrigeration, insulation, lighting, power supply, water supply, irrigation, sanitation, drainage, fire or security protection, sound, communication, air-conditioning, ventilation, or any other system or device forming or to form an integral part of any structure; or

(B) walls, ceilings, linings or floors of any description; or

(C) roof-tiles, ceramic tiles, quarry tiles, stone, or any other interior or exterior cladding or covering of any description; or

(D) any built-in furniture, any electrical or plumbing fittings (including kitchen or sanitary ware) so as to become fixtures; and

(iii) internal or external cleaning that is carried out in the course of, or in connection with, the construction, erection, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of any structure, roadworks or thoroughfare; and

(iv) any other activity, being an activity carried out on a structure or on land or on land on which a structure is to be located or on roadworks or thoroughfares or on land on which roadworks or thoroughfares are to be located, that forms an integral part of, is preparatory to, or is for rendering complete any of the activities referred to in this Paragraph other than in this Subparagraph and, without limiting the generality of the foregoing, includes site clearance, earthmoving, excavation, laying of foundations, erection of scaffolding, site restoration, landscaping or access works; and

(v) the provision of building and construction services of a professional nature (including the preparation of plans and specifications) performed in connection with any of the above activities;

(b) the transportation by road of goods or materials (including construction materials, agricultural produce, livestock, waste, natural resources or merchandise of any description);

(c) the reconditioning, servicing, repair or maintenance of a motor vehicle or of any component, accessory or part of a motor vehicle, or the painting of a motor vehicle or of any component, accessory or part of a motor vehicle in connection with such reconditioning, servicing, repair or maintenance, including the removal of fittings or replacement of any component, accessory or part of a motor vehicle;

(d) the construction of items of joinery (including veneering, laminating, polishing, staining or painting of cupboards or cabinets) that are to become fixtures in any structure;

(e) the provision of architectural services (including the preparation of plans and specifications);

(f) the provision of surveying services (including the preparation of plans and specifications);

(g) the provision of engineering services (including the preparation of plans and specifications);

(h) the cleaning and maintenance of–

(i) office, business, residential, institutional or any other premises or any part of such premises, including windows, furniture, fixtures and fittings; and

(ii) roadways, thoroughfares, venues and other places including recreational, sporting or other venues;

(i) the provision of security services;

(j) the provision of advertising or signwriting services;

(k) the provision of entertainment being any activity or performance, including performances or appearances on or for radio, television, or any film–

(i) in connection with any sporting event or competition of any nature, including motor racing, motor car rallying, motor cycle racing, motor boat racing, and horse racing; or

(ii) in connection with lectures, speeches, or talks for any purpose, whether on a regular or casual basis; or

(iii) in connection with any performance by actors, entertainers, musicians, singers, dancers, comperes or other artistes, whether regular or casual performers, and whether alone or with any other person or persons in choirs, choruses, bands, orchestras, ballets, or other entertainment groups and whether for the purpose of education or culture or religion or entertainment or any other purpose whatsoever;

(l) the provision of professional services or services as an adviser, consultant or manager.

10D. PRESCRIBED ROYALTY PAYMENTS FOR THE PURPOSES OF DIVISION VI.2 OF THE ACT.

For the purpose of Division VI.2 of the Act a prescribed royalty payment is a payment that–

(a) arises out of any of the following activities:

(i) the exploration, taking, extraction, processing, transport or conveyance of any form of hydrocarbon and all activities incidental or ancillary to such exploration, taking, extraction, processing, transport or conveyance; or

(ii) the exploration, taking, extraction, processing, transport or conveyance of any mineral and all activities incidental or ancillary to such exploration, taking, extraction, processing, transport or conveyance; or

(iii) activities of the kinds listed in the definition of “fishing operations” under Section 4 of the Income Tax Act 1959 or listed in the definition of “fishing” under Section 2 of the Fisheries Management Act 1998 and all activities incidental or ancillary to such activities; or

(iv) activities of the kinds listed in the definition of “timber operations” under Section 166 of the Income Tax Act 1959 and all activities incidental or ancillary to such activities; and

(b) is made by reason of the activity being performed on or in the vicinity of customary land or in waters adjacent to customary land.

10E. NOTIONAL RATE FOR THE PURPOSES OF SECTION 68AE OF THE ACT.

(1) In this section “long term bond rate”, in relation to a notional loan, means the market rate of interest applicable to five year Government Inscribed Stock as quoted by the Bank of Papua New Guinea for 1 January in the year of income during which the notional loan is treated by Section 68AE(1) of the Act as having been taken out or drawn down.

(2) For the purposes of Section 68AE of the Act, the notional rate, in relation to a notional loan of a particular class, shall be such rate as is advised by the Commissioner General from time to time by notice in the National Gazette, after consultation with the Governor of the Bank of Papua New Guinea, as the notional rate for loans of that class and in any other case shall be the long term bond rate increased by 5 percentage points.

10F. PRESCRIBED INFRASTRUCTURE DEVELOPMENTS FOR THE PURPOSE OF SECTION 219C OF THE ACT.

[8]For the purposes of Section 219C of the Act, the following is a prescribed infrastructure development expenditure: Expenditure on

(a) a capital development project in Papua New Guinea (which may, without limiting the general meaning of the term, include a school, aid post, hospital, bridge, road or other capital asset); and

(b) maintenance of capital assets owned by the State, of the type referred to in Paragraph (a),

paid for by a taxpayer who –

(c) is a resource project, as defined in Section 155 of the Act; or

(d) is a primary producer,

to the extent that

(e) the proposed expenditure has been approved by the Department of National Planning and Monitoring; and

(f) the Department of National Planning and Monitoring has certified to the Commissioner that the expenditure has been incurred; and

(g) the expenditure is not of a type required under a resource agreement as defined in Section 155 of the Act.

10G. DEFINITION OF “PETROLEUM PROJECTS” FOR THE PURPOSES OF SECTION 157A OF THE ACT.

[9](1) On and from 27 September 1990, all the petroleum operations conducted pursuant to and comprised in Petroleum Development Licence No.1 and Pipeline Licence No.1 shall constitute a petroleum project for the purposes of Section 157A of the Act and shall be known as the Hides Petroleum Project.

(2) On and from 1 January 1995 and until 1 April 2004, all the petroleum operations conducted pursuant to and comprised in Petroleum Development Licence No.2 and Pipeline Licence No.2 shall constitute a petroleum project for the purposes of Section 157A of the Act and shall be known as the Kutubu Petroleum Project.

(3) On and from 24 December 1996, all the petroleum operations conducted pursuant to an comprised in Petroleum Development Licence No.3 and No.4 and Pipeline Licence No.3 shall constitute a petroleum project for the purposes of Section 157A of the Act and shall be known as the Gobe Petroleum Project.

(4) The existing petroleum project known as the Kutubu Petroleum Project, comprised in Petroleum Development Licence No.2 and Pipeline Licence No.2 shall, for the purposes of Section 157A of the Act, be separated into two projects on and from 1 April 2004, referred to as the change date, as follows: –

(a) all the petroleum operations conducted pursuant to and comprised in Pipeline Licence No.2 and Petroleum Development Licence No. 2 excluding graticular block 2005, shall constitute a petroleum project known as the Kutubu Petroleum Project in respect of which –

(i) the allowable exploration expenditure attributable to the replacement Kutubu Petroleum Project on the change date shall be the balance of the allowable exploration expenditure attributable to the existing Kutubu Petroleum Project as at date; and

(ii) the allowable capital expenditure attributable to the replacement Kutubu Petroleum Project on the change date shall be the balance of the allowable capital expenditure attributable to the existing Kutubu Petroleum Project as at that date; and

(iii) losses and outgoings incurred by the existing Kutubu Petroleum Project in the year up to and including the change date shall be attributed to the replacement Kutubu Petroleum Project; and

(b) all the petroleum operations conducted pursuant to and comprised in graticular block 2005 of Petroleum Development License No.2 shall constitute a petroleum project known as the South-East Mananda Petroleum Project in respect of which –

(i) the allowable exploration expenditure attributable to the South-East Mananda Petroleum Project on the change date shall be nil; and

(ii) the allowable capital expenditure attributable to the South-East Mananda Petroleum Project on the change date shall be nil; and

(iii) there will be no loses and outgoings incurred by the existing Kutubu Petroleum Project in the year up to and including the change date attributed to the South-East Mananda Petroleum Project.

(5) Nothing in the separation into two operation projects of the petroleum operations comprised in Petroleum Development Licence No.2 and Pipeline Licence No.2 as specified in Subsection (4) shall be construed as having the effect of qualifying either of those two petroleum projects as a ‘new petroleum project’ for the purposes of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984.

10H[10]. [REPEALED.]

PART IV. – RETURNS AND ASSESSMENTS.

  1. RETURNS.

(1) Except as otherwise prescribed, a return under the Act shall–

(a) be made and furnished in such of the forms provided by the Commissioner General for the purpose as is applicable; and

(b) contain the information and particulars mentioned or referred to in that form; and

(c) be verified by declaration as set forth in the form; and

(d) be accompanied by such balance-sheets, profit and loss accounts, statements and other documents as are mentioned in the form or as are requisite.

(2) In the case of a non-resident, the declaration set forth in the form of return may be altered so as to exclude any reference to income derived from sources out of Papua New Guinea,

  1. RETURNS BY PERSONS OTHER THAN COMPANIES.

The form of return applicable in the case of persons other than companies shall–

(a) itemize the income derived from various sources, the deductions claimed and dependants for whom a rebate is claimed; and

(b) provide for particulars to be supplied under separate headings relating to income derived and deductions claimed; and

(c) provide for the following particulars, with such modifications or extensions, if any, as the Commissioner General from time to time determines, namely:–

(i) a statement of particulars relating to sources of information and a certificate to be signed by tax agents;

(ii) a schedule of live stock;

(iii) a statement of group certificates and tax stamp sheets forwarded with the return;

(iv) a statement of salaries, wages, and commission paid, and allowances to employees;

(v) a statement by trustee or partnership;

(vi) a statement of dividends received;

(vii) a statement of interest received;

(viii) a statement of dependants; and

(d) provide for a declaration by the person making the return that the particulars shown in the return and in the accompanying statements are true and correct in every particular and disclose without reservation or exception a full and complete statement of the total income derived during the year of income from all sources in and out of Papua New Guinea.

  1. RETURNS BY COMPANIES.

(1) The form of return applicable in the case of companies shall provide for–

(a) a statement reconciling the net profit as per the profit and loss account with the net taxable income; and

(b) a statement of dividends paid or credited during a period to be specified on the form; and

(c) a statement of particulars of advances or loans made by a private company to its shareholders, or of payments made on behalf of, or for the individual benefit of, any of its shareholders, and of the dates of the advances, loans or payments; and

(d) a statement of particulars relating to sources of information and a certificate to be signed by tax agents; and

(e) a statement of interest received; and

(f) a statement of remuneration of directors and shareholders;

(g) a statement of salaries, wages and commission paid and allowances to employees; and

(h) a declaration by the public officer that the particulars shown in the return and in the accompanying statements are true and correct in every particular and disclose without reservation or exception a full and complete statement of the total income derived during the year of income from all sources in and out of Papua New Guinea.

(2) A return by a company shall be accompanied (in addition to any other documents required under these Regulations) by statements showing the following particulars, with such modifications, if any, as the Commissioner General determines, namely:–

(a) the names and addresses of all shareholders and the amount of dividend (if any) paid to each shareholder during the year of income;

(b) the names and addresses of all persons to whom interest in excess of K100.00 was paid or credited during the year of income and the amount so paid or credited to each person;

(c) the total amount of interest paid or credited, during the year of income, to depositors and debenture-holders who are not residents of Papua New Guinea on money secured by debentures of the company and used in Papua New Guinea, or used in acquiring assets for use or disposal in Papua New Guinea, and on money lodged at interest in Papua New Guinea with the company, after deducting–

(i) interest paid or credited outside Papua New Guinea to persons who are not residents of Papua New Guinea on debentures issued outside Papua New Guinea;

(ii) unless the Commissioner General otherwise directs–interest paid or credited to a company, not being a resident of Papua New Guinea, carrying on business in Papua New Guinea that has a public officer duly appointed under the Act; and

(iii) in the case of interest (not included in Subparagraphs (i) or (ii)) paid or credited to any person (other than a company) who is not a resident of Papua New Guinea–the amount of interest or the amount of K936.00, whichever is the less;

(d) the total amount of interest paid or credited during the year of income in respect of debentures payable to bearer, the names and addresses of the holders of which are not supplied to the Commissioner General by the company; and

(e) the names and addresses of all holders of debentures payable to bearer that the company is in a position to furnish (whether those holders are residents or non-residents), together with the amount of interest paid or credited, during the year of income, to each of those holders.

  1. SIMPLIFIED RETURN FORMS.

Notwithstanding anything contained in the last two preceding regulations, the Commissioner General may provide forms of return that omit any of the items, parts, particulars or statements specified in those regulations.

  1. STATEMENT TO BE FURNISHED BY EMPLOYERS.

(1) An employer of labour shall, when called upon by the Commissioner General either by general notice published in the National Gazette or by direct notice to the employer, furnish to the Commissioner General a statement showing–

(a) the names and addresses of all persons employed by him during the period mentioned in the notice; and

(b) the capacity in which each person was employed; and

(c) the total amount of remuneration paid to each person during that period; and

(d) the value of board, residence or other allowance made to each person during that period.

(2) Each statement shall be furnished to the Commissioner General at his office at Port Moresby.

  1. RETURNS BY PARTNERSHIPS.

(1) The Commissioner General may, by notice published in the National Gazette, require the partners in every partnership to make and furnish a return setting forth a full and complete statement of the income derived by the partnership during the year of income.

(2) The return shall be made and furnished by the partners resident in Papua New Guinea or by any one of them or, where there is no partner resident in Papua New Guinea, by the agent in Papua New Guinea for the partnership.

  1. SEPARATE RETURNS BY PARTNERS.

(1) Every partner in a partnership shall furnish a separate return of his total individual income (including income from the partnership and other sources) in every case in which he would be required to furnish a return if the same total income had been derived by him from sources other than the partnership.

(2) The return shall state the income derived respectively from–

(a) the partnership; and

(b) from other sources.

  1. RETURNS BY TRUSTEES.

(1) The Commissioner General may, by notice published in the National Gazette, require the trustees of every trust to make and furnish a return setting forth a full and complete statement of the income derived by the trust during the year of income.

(2) The return shall be made and furnished by the trustees resident in Papua New Guinea or by any one of them or, where there is no trustee resident in Papua New Guinea, by the agent in Papua New Guinea for the trustees.

  1. RETURNS BY AGENTS.

A person liable to furnish a return as agent for any person shall furnish a separate return for each person for whom he is agent, in addition to his own individual return.

  1. NOT SOLE AGENT.

If an agent is not the sole agent in Papua New Guinea for a person for whom he is required to furnish a return, he shall set forth in that return particulars of all his transactions as agent for that person.

  1. SPECIAL RETURNS.

Returns required by the Commissioner General otherwise than by notice published in the National Gazette shall be made and furnished in the form required by the Commissioner General.

  1. SUBSTANTIALLY SIMILAR FORM.

The Commissioner General may at any time accept a return or form that is substantially in accordance with a prescribed form or a form provided by the Commissioner General.

  1. IDENTIFICATION OF STATEMENTS ACCOMPANYING RETURNS.

Any balance-sheet, profit and loss account or other statement, document, list or information accompanying a return shall be signed by the person making and furnishing the return and shall bear an endorsement so that it may be identified as so accompanying the return.

  1. FURNISHING OF RETURNS.

All returns of income shall be furnished to the Commissioner General at his office at Port Moresby.

  1. WHEN RETURN DEEMED TO BE FURNISHED.

A return shall be deemed not to have been duly furnished to the Commissioner General unless and until–

(a) the proper form signed as required by the Act and these Regulations and containing a full, true and complete statement of all matters and things required to be stated in the form by the Act, these Regulations, the Commissioner General and the form itself; and

(b) all balance-sheets, profit and loss accounts, statements, notices and other documents that, by the Act, these Regulations or the Commissioner General are required to accompany the return,

have, at the office of the Commissioner General at Port Moresby, been received by an officer authorized by the Commissioner General to receive returns.

  1. PERSONS TO TAKE NECESSARY STEPS FOR DUE FURNISHING OF RETURN.

Where a person is required by the Act, these Regulations or the Commissioner General to furnish a return to the Commissioner General, it is the duty of that person to make the required return and take all steps necessary to ensure that the return is received by the Commissioner General at his office at Port Moresby.

  1. NOTICE OF ADDRESS.

A person who furnishes a return shall, in the return, give an address in Papua New Guinea for service.

  1. NOTICE OF CHANGE OF ADDRESS.

A person who has given an address for service and who subsequently changes his address shall, within one month after the change, give to the Commissioner General, at his office at Port Moresby, notice in writing of his new address for service in Papua New Guinea.

  1. ADDRESS FOR SERVICE.

The address for service last given to the Commissioner General by any person shall, for the purposes of the Act and these Regulations, be his address for service, but where no address for service has been given to the Commissioner General, or where the departmental records disclose that that person has subsequently changed his address and he has not notified the Commissioner General, either in the return or by separate written advice, of the change, then the address of that person, as described in any record in the custody of the Commissioner General, shall be his address for service.

  1. LAST-KNOWN PLACE OF BUSINESS OR ABODE.

The address for service of a person, as prescribed by the last preceding regulation, shall, for the purposes of the Act and these Regulations, be deemed to be the last-known place of business or abode in Papua New Guinea of that person.

  1. FAILURE TO NOTIFY CHANGE OF ADDRESS.

A person who changes his address and fails to give to the Commissioner General notice of his new address for service in Papua New Guinea shall not be permitted to plead the change of address as a defence in any proceedings (whether civil or criminal) instituted against him under the Act or these Regulations.

  1. ANNOTATIONS ON RETURNS.

(1) The Commissioner General may cause or permit his officers to make on any return such marks, figures and annotations as the Commissioner General thinks fit.

(2) The marks, figures and annotations shall be made in ink of a colour different from that of the ink used in the return.

  1. PARTICULARS RELATING TO SOURCES OF INFORMATION.

(1) A person who charges, directly or indirectly, any fee for preparing or assisting in the preparation of a return shall furnish information in accordance with Form 5 as to–

(a) what books of account, if any, are kept by or on behalf of the taxpayer; and

(b) the name and address of the person by whom those books are kept; and

(c) whether the books are audited each year, and, if so, the name and address of the person by whom they are audited; and

(d) whether the return is in accordance with those books; and

(e) if the return is not in accordance with those books, the basis upon which, and the information upon which, the return has been prepared; and

(f) by what means he has endeavoured to ascertain whether the books of account or other sources of information upon which the return is based are correct and disclose the whole of the taxpayer’s income from all sources,

and shall sign the certificate contained in that Form.

(2) The agent’s certificate shall be deemed to be duly signed, in the case of a partnership or a company that is registered as a tax agent in pursuance of Part VIII of the Act, if it is signed in the name of the partnership or the company, as the case requires, by a person who is registered as a nominee of the partnership or the company for the purposes of that Part, and that person’s name is also appended, and not otherwise.

(3) A person carrying on business who does not furnish with his return an agent’s certificate shall furnish the particulars referred to in Subsection (1)(a) to (e) inclusive.

(4) In the case of a return by a company, Form 5 shall be altered by omitting the words–

“B. Every person carrying on business who does not furnish with his return an agent’s certificate.”

and inserting in their stead the words–

“B. Every company carrying on business that does not furnish with its return an agent’s certificate.”

PART V. – OBJECTIONS AND APPEALS.

  1. FORM OF OBJECTION.

(1) An objection against an assessment under Section 245 of the Act may be made in accordance with Form 6.

(2) The objection shall be posted to, or lodged with, the Commissioner General at his office at Port Moresby.

(3) The application for Review by the Tribunal under Section 247 of the Act may be made in accordance with Form 6A and shall be posted to the Registrar, Income Tax Review Tribunal C/o Commissioner General Internal Revenue Commission at his office in Port Moresby.

  1. [REPEALED.]
  2. NOTICE OF REVIEW.

(1) The Review Tribunal shall cause notices to be served upon the Commissioner General and the taxpayer of the date on which the review is to take place.

(2) Notice of a review shall be given not less than 14 days before the date on which the review is to take place.

(3) A notice under this regulation may be served either personally or by post.

  1. ORDER, PLACE AND TIME OF REVIEW.

(1) All references for the purpose of review by the Review Tribunal shall be numbered consecutively and, unless the Tribunal otherwise directs, the reviews shall take place in the order in which the references are received.

(2) The sittings of the Tribunal for the purpose of reviews shall be held in such place or places and at such time or times as are fixed by the Tribunal.

(3) The Tribunal is not required to sit on public holidays.

  1. CONDUCT OF REVIEW.

(1) Subject to this Part, reviews by the Review Tribunal shall be conducted as the Tribunal from time to time directs.

(2) All reviews shall take place in camera unless the taxpayer otherwise requires.

(3) Where a review takes place in public the decision shall be given at a public meeting of the Tribunal.

(4) Either party to a review may nominate a person to represent him at the review.

(5) The Tribunal may adjourn a review from time to time as it thinks fit,

  1. EVIDENCE.

(1) Subject to Subsection (2), the Review Tribunal–

(a) shall take all oral evidence on oath or affirmation and for that purpose the person constituting the Tribunal has power to administer oaths and affirmations;

(b) may receive, without formal proof, a copy, duly certified as correct by a responsible officer of a bank, of a person’s account with that bank and may take into consideration any entry or particular contained in the copy of that account;

(c) may receive, without formal proof, a copy, duly certified as correct by a responsible officer of the State, of any government or of any public, municipal or other local body or authority within Papua New Guinea, or a document in the possession of the State or of that government, body or authority, as the case may be, and may take into consideration any statement or particular contained in the copy of that document; and

(d) may receive, without formal proof, any other document containing any statement or particular that, in the opinion of the Tribunal, is relevant to the question in issue in the review (not being a document that has been brought into existence solely for the purpose of the review) and may take into consideration any such statement or particular.

(2) The Tribunal may, by notice in writing, require a person–

(a) to furnish the Tribunal with such information as, in the opinion of the Tribunal, is necessary for the purpose of a review by the Tribunal; or

(b) to attend and give evidence before the Tribunal, or before an officer authorized by the Tribunal to take evidence, concerning his or any other person’s income or assessment, and may require him to produce all books, documents and other papers in his custody or under his control relating to that income or assessment,

and the Tribunal may require the information or evidence to be given on oath, and either verbally or in writing, and for that purpose the person constituting the Tribunal or the officer authorized by him has power to administer oaths.

(3) A person shall not, without just cause or excuse shown by him, refuse or neglect to comply with a requirement made on him under this regulation or to answer fully and truly any question put to him by the Tribunal, or by an officer authorized by the Tribunal to take evidence, in connection with a review.

(4) The expenses to be allowed to a person required to attend and give evidence under this section shall be as prescribed by Section 96 but expenses shall not be allowed in pursuance of this regulation to a person who is so required to attend in consequence of a request made by or on behalf of the taxpayer.

  1. DECISIONS OF TRIBUNAL.

(1) The Tribunal shall forward copies of its decision on a review to the Commissioner General and to the taxpayer, and the Commissioner General shall, unless the decision has been appealed from, give effect to the decision within 60 days after the receipt of the decision.

(2) The Tribunal may, from time to time, compile and publish summaries of its decisions.

  1. COMMUNICATIONS TO TRIBUNAL.

Communications to the Tribunal may be addressed to the Tribunal in the care of the Commissioner General at his office in Port Moresby.

  1. EVIDENCE ON APPEAL.

Where the Commissioner General has, in pursuance of Section 232(2)(a) of the Act, amended an assessment, the production in any proceedings on appeal against the assessment as so amended of a certificate in writing signed by the Commissioner General or an Assistant Commissioner stating that he is of opinion that the avoidance of tax was due to fraud or evasion is conclusive evidence that the Commissioner General or the Assistant Commissioner, as the case may be, was of opinion as stated in the certificate.

PART VI. – COLLECTION AND RECOVERY OF TAX.

Division 1.

General.

  1. HOW TAX MAY BE PAID.

(1) A taxpayer may pay amounts due to the Commissioner General–

(a) by delivery of cash, bank notes or cheques at the office of the Commissioner General; or

(b) by remitting the amount due to the Commissioner General by bank draft, cheque, postal money order or postal note payable in Port Moresby; or

(c) subject to the consent of the Commissioner General, which may be withheld by the Commissioner General for any reason which appears good and sufficient to him, by transferring the title to real or movable property to the Commissioner General; or

(d) [repealed by implication]; or

(e) [repealed by implication].

(2) The Commissioner General may direct that any tax payable under the Act is to be paid in a currency other than Kina.

(3) The payment of the foreign currency equivalent at the official (inter-bank) closing rate of exchange fixed by the Central Bank under the Central Banking Act 2000 on the day which is two banking days prior to the date of payment, shall be a lawful discharge of the taxpayer’s obligations to pay the tax.

(4) Where following an assignment by the State pursuant to Section 11A of the Mineral Resources Stabilization Fund Act (Chapter 194) the State has given notice to a taxpayer to pay moneys to the relevant assignee, the Commissioner General shall, for the purposes of this Regulation, direct the taxpayer as to the account of the relevant assignee into which those payments are to be made.

43A. TAX PAID BY THE TRANSFER OF PROPERTY.

When tax has been paid by the transfer of property–

(a) payment shall not be deemed to have been made until that property has been sold or otherwise disposed of by the Commissioner General; and

(b) the amount of payment deemed shall equal the net proceeds, after deducting the costs of disposal, received by the Commissioner General from the sale or disposal of that property.

  1. POST OFFICE TO BE AGENT OF REMITTER.

When a person posts a remittance addressed to the Commissioner General, the Post Office shall be deemed to be the agent of the remitter, and payment shall be deemed not to have been made until the remittance has been received by the addressee.

  1. PAYMENT BY CHEQUE.

When a cheque has been delivered or remitted to the Commissioner General in payment of an amount payable to the Commissioner General, that amount shall (notwithstanding any receipt given for it) be deemed not to have been paid until the amount for which the cheque is drawn has been collected.

  1. RECEIPTS TO BE ISSUED.

Receipts for amounts paid to the Commissioner General shall be issued by such persons as the Commissioner General may authorize.

  1. PART PAYMENT OF TAX.

Except with the express consent of the Commissioner General, money shall not be accepted on account, or in part payment, of an amount payable to the Commissioner General.

  1. POSTAGE TO BE PREPAID.

The postage on a return, statement, communication, remittance or other matter sent by post, addressed to the Commissioner General, shall be fully prepaid by the sender.

  1. DEFICIENT POSTAGE.

When a sum is received as payment of income tax, the Commissioner General shall first deduct from that sum the amount of postage and surcharge (if any) paid upon any unstamped or insufficiently stamped matter received through the post from the taxpayer and shall credit in payment of tax only the net amount then remaining.

  1. NOTICE TO THE STATE.

(1) The person upon whom notice may be served in pursuance of Section 272(6) of the Act is the Paying Officer of any Department of the Government.

(2) For the purposes of this regulation, “Paying Officer” means any officer of the State who, by any law, regulation or appointment, is charged with the duty of disbursing or who does actually disburse any public moneys.

  1. WHERE NO ADMINISTRATION OF ESTATE.

An order under Section 274(5) of the Act shall be in accordance with Form 7.

  1. CERTIFICATE AS TO SERVICE OF NOTICE OF ASSESSMENT, ETC.

In an action against a person for the recovery of income tax, a certificate in writing, signed by the Commissioner General, an Assistant Commissioner or a prescribed delegate of the Commissioner General certifying that–

(a) the person named in the certificate is a taxpayer; and

(b) an assessment of income tax was duly made against him in respect of the year mentioned in the certificate; and

(c) the particulars of the assessment are as stated in the certificate; and

(d) notice of the assessment was duly served upon him; and

(e) the sum named in the certificate was at the date of the certificate due by him to the State in respect of income tax,

is evidence of the facts stated in the certificate.

  1. EVIDENCE BY AFFIDAVIT.

In an action for the recovery of an amount payable to the Commissioner General, evidence may be given by affidavit, but the court may require the deponent to attend for the purpose of being cross-examined.

53A. NON-APPLICATION OF THIS DIVISION.

This Division does not apply to salary or wages derived after 1 January 1980.

Division 2.

Collection of Income Tax by Instalments.

  1. APPLICATION FOR REGISTRATION AS A PAYING AUTHORITY.

An application under Section 277 of the Act for registration as a paying authority shall be signed by the applicant and shall be made at the office of the Commissioner General in the National Capital District.

  1. PAYING AUTHORITY REGISTRATION.

Where the Commissioner General registers a person as a paying authority under Section 277 of the Act, he may allot a registration number to the paying authority and shall notify the paying authority accordingly.

  1. BUSINESS INCOME PAYEE DECLARATIONS TO BE LODGED IN DUPLICATE.

A business income payee declaration under Section 279 of the Act shall be furnished to a paying authority in duplicate.

  1. PAYING AUTHORITY TO RETAIN DUPLICATE BUSINESS INCOME PAYEE DECLARATION.

Where a paying authority is furnished with a business income payee declaration under Section 279 of the Act he shall countersign the duplicate in the space provided on the form and retain the duplicate in his records until 31 December in the financial year next following that during which the declaration ceases to be in force.

  1. HOW AMOUNTS MAY BE PAID TO COMMISSIONER GENERAL.

A paying authority required to pay an amount to the Commissioner General may pay that amount–

(a) by delivery of cash, bank note or cheques at an office of the Commissioner General; or

(b) by remitting the amount to the Commissioner General by bank draft or cheque or by postal money order or postal note payable in Port Moresby.

  1. REMITTANCE ADVICE.

A remittance advice furnished to the Commissioner General under Section 280(1)(b)(iii) of the Act shall be in a form approved by the Commissioner General.

  1. ISSUE OF INCOME TAX DEDUCTION CERTIFICATES.

(1) A paying authority who is required to issue an income tax deduction certificate to a person who is or has been a business income payee shall sign the certificate, and may issue it–

(a) by causing it to be delivered to that person personally; or

(b) by posting it by prepaid letter post addressed to that person at his last-known postal address.

(2) Where an income tax deduction certificate that has been posted in accordance with this section is returned to the paying authority undelivered, he shall forward the certificate to the Commissioner General not later than–

(a) 30 April next following the end of the financial year in which the deductions covered by the certificate were made; or

(b) seven days after the date of the return of the certificate,

whichever is the later.

  1. SIGNATURES BY OR FOR PAYING AUTHORITIES.

(1) A document required by the Act or the Regulations to be signed by a paying authority shall be signed–

(a) in the case of an individual–by that individual; and

(b) in the case of trustees–by the senior active trustee resident in Papua New Guinea, or, where there is no active trustee resident in Papua New Guinea by the agent in Papua New Guinea of the trustees;

(c) in the case of a company–by the public officer of the company;

(d) in the case of the State–by an officer appointed for the purpose by the Secretary of the Department responsible for finance matters; and

(e) in the case of a municipal corporation, local governing body or public authority–by an officer authorized by that corporation, local governing body or authority.

(2) Where it is not possible or practicable for the person specified in Subsection (1) personally to sign all such documents, that person may authorize, in writing, another person to sign any such documents.

(3) A paying authority shall forward to the Commissioner General a specimen signature, on a form approved by the Commissioner General, of every person authorized by or under this section to sign documents in relation to a group, together with particulars of his name and of the capacity in which he acts, and a person so authorized shall not sign a document referred to in Subsection (1) until his specimen signature has been so furnished.

(4) The Commissioner General may, if he thinks fit, by notice in writing to the paying authority, disapprove of the authorization of a person under Subsection (2), and thereafter that person shall not sign a document referred to in Subsection (1).

(5) Where a person authorized by or under this section to sign documents ceases (otherwise than in pursuance of Subsection (4)) to be so authorized, the paying authority shall, within 14 days thereafter, notify the Commissioner General accordingly.

Division 2A.

Collection of Foreign Contractor (Withholding) Tax.

  1. AMOUNT OF DEDUCTION TO BE MADE.

For the purpose of Section 196F(3) of the Act the amount of deduction to be made from a prescribed contract payment under that section is the amount prescribed by Section 6A of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984.

62A. PAYER TO ADVISE FOREIGN CONTRACTOR OF AMOUNT DEDUCTED.

Where a deduction has been made from a prescribed contract payment under Division 14A of Part III of the Act, the payer shall, at the time the remainder of that prescribed contract payment is paid by him to the foreign contractor, advise that person in writing of the amount of foreign contractor (withholding) tax deducted from that payment.

62B. METHOD OF MAKING PAYMENT TO COMMISSIONER GENERAL.

A person who is required to pay an amount to the Commissioner General under the provisions of Section 196(4)(a) of the Act may pay that amount by–

(a) delivery in cash, bank notes or cheque to the office of the Commissioner General in Port Moresby; or

(b) remitting by mail that amount to the Commissioner General’s office in Port Moresby, in the form of a bank draft, cheque, postal money order or postal note.

62C. FORM OF REMITTANCE ADVICE.

A remittance advice furnished to the Commissioner General pursuant to Section 196(4)(b) of the Act shall be in a form approved by the Commissioner General.

Division 2B.

Collection of Management Fee (Withholding) Tax.

  1. AMOUNT OF DEDUCTION.

For the purpose of Section 196U of the Act the amount of deduction to be made from a management fee under that section is the amount prescribed by Section 6B of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984.

63A. PAYER TO ADVISE PERSON ENTITLED TO PAYMENT OF AMOUNT DEDUCTED.

Where a deduction has been made from a management fee under Division 14C of Part III of the Act, the payer shall, at the time the remainder of that management fee is paid by him to the person entitled to that payment, advise that person in writing of the amount of management fee (withholding) tax deducted from that payment.

63B. METHOD OF PAYMENT TO COMMISSIONER GENERAL.

A person who is required to pay an amount to the Commissioner General under the provisions of Section 196V(1)(a) of the Act may pay that amount by–

(a) delivery in cash, bank notes or cheque to the office of the Commissioner General in Port Moresby; or

(b) remitting by mail that amount to the Commissioner General’s office in Port Moresby, in the form of a bank draft, cheque, postal money order or postal note.

63C. FORM OF REMITTANCE ADVICE.

A remittance advice furnished to the Commissioner General pursuant to Section 196V(1)(b) of the Act shall be in a form approved by the Commissioner General.

Division 2C.

Collection of Royalty Tax.

  1. AMOUNT OF DEDUCTION TO BE MADE.

For the purpose of Section 357(2) of the Act the amount of deduction to be made from a royalty payment under that section is the amount prescribed by Section 7 of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984.

64A. PAYER TO ADVISE PERSON ENTITLED TO PAYMENT OF AMOUNT DEDUCTED.

Where a deduction has been made from a royalty payment under Division 3 of Part IX of the Act, the payer shall, at the time the remainder of that royalty payment is paid by him to the person entitled to that payment, advise that person in writing of the amount of royalty tax deducted from that payment.

64B. METHOD OF PAYMENT TO COMMISSIONER GENERAL.

A person who is required to pay an amount to the Commissioner General under the provisions of Section 357(2) of the Act may pay the amount by–

(a) delivery in cash, bank notes or cheque to the office of the Commissioner General in Port Moresby; or

(b) remitting by mail that amount to the Commissioner General’s office in Port Moresby, in the form of a bank draft, cheque, postal money order or postal note.

64C. FORM OF REMITTANCE ADVICE.

A remittance advice furnished to the Commissioner General’s office in Port Moresby, shall be in a form approved by the Commissioner General.

  1. [11][REPEALED.]

Division 3.

Collection of Dividend (Withholding) Tax.

65A. DEDUCTIONS FROM DIVIDENDS.

(1) For the purposes of Section 311C of the Act, the amount of the deduction to be made from a dividend payable under that section is the amount prescribed by Section 10 of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984 as the rate of dividend (withholding) tax.

(2) Where a deduction has been made from a dividend under Division 4 of Part VI of the Act, the payer shall, at the time when the dividend is paid by him to the person entitled to the dividend, advise that person in writing of the amount of dividend (withholding) tax deducted from the dividend.

65B. HOW DEDUCTIONS MAY BE PAID.

(1) A person who is required to pay an amount to the Commissioner General under Section 311E(1)(a) of the Act may pay that amount–

(a) by delivery of cash, bank notes or cheques at the office of the Commissioner General; or

(b) by remitting that amount to the Commissioner General by cheque or bank draft or by forwarding a money order or postal order payable in Papua New Guinea; or

(c) [repealed by implication]; or

(d) [repealed by implication].

(2) The Commissioner General may direct in writing that any amount payable under Section 311E(1)(a) is to be paid in a currency other than Kina.

(3) The payment of the deducted amount in foreign currency shall be the foreign currency equivalent of that amount at the market rate applicable on the date of payment and such payment shall be a lawful discharge of the person’s obligation to pay to the Commissioner General.

(4) [repealed by implication].

65C. WHERE STATEMENT OF DEDUCTIONS TO BE FURNISHED.

A statement required to be furnished by a person to the Commissioner General under Section 311E(1)(b) of the Act shall be furnished to the Commissioner General at the Taxation Office in Port Moresby.

Division 3A.

Collection of Interest (Withholding) Tax.

65D. DEDUCTIONS FROM INTEREST.

(1) For the purposes of Section 312AC of the Act, the amount of deduction to be made from interest under that section is the amount prescribed by Section 10A of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984 as the rate of interest (withholding) tax.

(2) Where a deduction has been made from interest under Division VI.5A of the Act, the payer shall, at the time when deduction is made to the person entitled to interest, advise that person in writing of the amount of interest (withholding) tax deducted from the interest.

65E. HOW DEDUCTIONS MAY BE PAID.

A person who is required to pay an amount to the Commissioner General under Section 312AE(1)(a) of the Act may pay that amount–

(a) by delivery of cash, bank notes or cheques at the office of the Commissioner General; or

(b) by remitting that amount to the Commissioner General by cheque or bank draft or by forwarding a money order or postal order payable in Papua New Guinea.

65F. WHERE REMITTANCE ADVICE AND STATEMENT OF DEDUCTIONS TO BE FURNISHED.

A remittance advice required to be furnished under Section 312AE(1)(a)(ii) of the Act or a statement required to be furnished under Section 312AE(1)(b) of the Act shall be furnished to the Commissioner General at the Taxation Office in Port Moresby.

Division 4.

Collection of Salary or Wages Tax.

Subdivision A. – Rate of deduction from salary or wages.

  1. AMOUNT OF DEDUCTION.

(1) In accordance with this Subdivision unless the contrary appears tax shall be deducted from all payments which fall within the definition of salary or wages at the rates declared by the Income Tax (Salary or Wages Tax) (Rates) Act 1979.

(2) Where payment is made other than on a fortnightly basis and where the period of employment either exceeds or is less than one fortnight, tax is to be deducted at the fortnightly rate calculated in accordance with Section 299D of the Act.

(3) Where payment is made in advance for such purposes as the employee proceeding on leave or absenting himself from his employment, the gross amount of the payment shall be divided by the number of fortnights for which the payment is in lieu and fortnightly deductions made at this rate.

(4) Where an amount is received by a person being income or a payment to which Section 1(2) of the Income Tax (Salary or Wages Tax) (Rates) Act 1979 refers, the rate of salary or wages tax payable by that person on that part of his income representing that lump sum or payment deemed salary or wages is the rate set down in the Income Tax (Salary or Wages Tax) Act 1979.

66A. DECLARATION TO BE LODGED.

(1) Subject to Subsections (2) and (4), every taxpayer who is an employee, shall furnish to his employer a declaration in accordance with this section in duplicate.

(2) An employee shall not furnish a declaration under this subdivision to the Commissioner General or an employer of the employee while–

(a) another declaration which has not ceased to have effect under this subdivision has been furnished by the employee to another employer of the employee; or

(b) a certificate issued to the employee by the Commissioner General under Section 299F(2), has not ceased to have effect for the purposes of this subdivision.

(3) For the purposes of Parts III.2B and VI.2A and Section 232 of the Act a declaration shall be in the form set out in Form 10 or in such form as is approved by the Commissioner General.

(4) Notwithstanding anything contained in this Division, the Commissioner General may waive the requirement for lodgment of a declaration by an employee or a class of employees for the purpose of meeting the special circumstances of any case or class of cases, and Section 66B shall be of no effect, provided that–

(a) he shall notify the employer of the employee or that class of employees of the waiver in writing; and

(b) the employer shall comply with the conditions, if any, set out in that written notification.

66B. RATES OF DEDUCTION WHERE AN EMPLOYEE DOES NOT LODGE A DECLARATION.

Subject to Section 66A, where an employee does not lodge a declaration, the amount of deduction to be made from salary or wages for the purposes of Section 299D of the Act for a fortnight or part of a fortnight is–

(a) where the salary exceeds K1.00 but does not exceed K123.00–the rate specified in Column 3 of the Table A in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979 opposite to the limits specified in Column 1 of that Table, within which the salary or wages is included; and

(b) where the salary exceeds K123.00 but does not exceed K650.00–the rate specified in Column 3 of the Table B in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979 opposite to the limits specified in Column 1 of that Table, within which the salary or wages is included; and

(c) where the salary or wages exceeds K650.00–the rate specified in Column 2 of Table C in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979; and

(d) where the salary or wages exceeds K800.00–the rate specified in Column 1 of Table D of the Income Tax (Salary or Wages Tax) (Rates) Tax 1979.

66C. RATES OF DEDUCTION WHERE EMPLOYEES DO NOT CLAIM FOR DEPENDANTS.

In respect of the salary or wages of an employee who in the declaration furnished by him under this Regulation shows no dependants the prescribed rate at which deductions are to be made for the purposes of Section 299D of the Act for a fortnight or part of a fortnight is–

(a) where the salary exceeds K123.00 but does not exceed K650.00–the rate specified in Sub-column (i) of Column 4 of the Table B in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979 opposite to the limits specified in Column 1 of that Table, within which the salary or wages is included; and

(b) where the salary or wages exceeds K650.00–the rate specified in Column 3 of Table C in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979.

66CA. RATES OF DEDUCTION WHERE AN EMPLOYEE IS A NON-RESIDENT PERSON.

In respect of the salary or wages of an employee who in the declaration furnished by him under this Regulation shows he is a non-resident person, the prescribed rate at which deductions are to be made for the purposes of Section 299D of the Act for a fortnight or part of fortnight is–

(a) where the salary exceeds K1.00 but does not exceed K123.00–the rate specified in Column 2 of the Table A in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979 opposite to the limits specified in Column 1 of that Table, within which the salary or wages is included; and

(b) where the salary exceeds K123.00 but does not exceed K650.00–the rate specified in Column 2 of the Table B in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979 opposite to the limits specified in Column 1 of that Table, within which the salary or wages is included; and

(c) where the salary exceeds K650.00–the rate specified in Column 1 of Table C in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979.

66D. RATES OF DEDUCTION WHERE EMPLOYEE CLAIMS FOR DEPENDANTS.

(1) Where an employee has furnished to his employer a declaration in accordance with this Regulation showing he has dependants, the prescribed rate at which deductions are to be made for the purposes of Section 299D of the Act from the salary or wages of that employee in respect of a fortnight or a part of a fortnight at any time up to–

(a) the last payment of salary or wages before 1 January next following the date on which the declaration is furnished; or

(b) the close of the first pay period that ends after the date on which a further declaration is furnished to his employer by the employee,

whichever is the earlier, is–

(c) where the salary exceeds K123.00 but does not exceed K650.00–the rate specified, opposite to the limits specified in Column 1 of Table B in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979 within which the salary or wages is included, in Sub-column 4 of that Table that has the same number of dependants at its head as detailed in the declaration; or

(d) where the salary or wages exceeds K650.00–the rate specified in Column 3 of Table C in Schedule 1 to the Income Tax (Salary or Wages Tax) (Rates) Act 1979 reduced by the amount for each dependant shown in the footnote to Table C.

(2) The employer shall give effect to a declaration furnished in accordance with Section 66E in making deductions from salary or wages paid before the close of the first pay period commencing after the furnishing of the declaration.

66E. FORM OF DECLARATION.

(1) A declaration for the purposes of this Regulation shall be signed by the employee and shall set out particulars of each of the dependants of the employee at the time of making the declaration as the employee desires to be taken into account for the purposes of Section 66D or shall indicate that the employee has no dependants for the purpose of that section.

(2) Where the Commissioner General is satisfied that, by reason of circumstances connected with the employment of an employee, it is or will be impracticable for the employee to furnish to his employer a declaration for the purposes of this Regulation, the employee may furnish that declaration to the Commissioner General, and the Commissioner General may issue to the employee a certificate specifying the number of dependants of that employee who are named in the declaration.

(3) After the issue of such a certificate and until the date specified in the certificate as the date on which it expires, the rates at which an employer who employs that employee for not less than four days in any week and to whom the certificate is exhibited in that week shall make the deductions, from the salary or wages of that employee in respect of that week and shall, notwithstanding the provision of Section 66D(2), be the same as if the number of dependants as shown in the certificate were the number of dependants set out in a declaration duly furnished to the employer at the time the certificate is exhibited.

(4) Where, after an employee has furnished to his employer or to the Commissioner General a declaration in accordance with this Regulation, a person described in that declaration ceases to be a dependant of the employee, the employee shall, within 14 days after the date upon which that person so ceases to be a dependant of the employee, furnish a further declaration to his employer or to the Commissioner General, as the case may be, and, where the further declaration is furnished to the Commissioner General, return to the Commissioner General the certificate issued by him.

(5) Subject to Subsection (6), for the purposes of this Division a person is a dependant of an employee at any time when the facts and circumstances that exist are such that, if they existed unchanged during the whole of the year of income of the employee, and salary and wages tax had not been deducted that person would have qualified, as a dependant for the purposes of Part III.18A of the Act.

(6) A person is not a dependant of an employee at any date by reference to Part III.18A of the Act if that person is, at that date, in receipt of a separate net income at a rate of, or exceeding K40.00 per fortnight, or if the person has derived a separate net income in excess of K1040.00 per annum, or is maintained partly or wholly from subsistence farming or if more than one member of the family or other person contributes toward the maintenance of that dependant.

(7) Where an employee is in receipt of an allowance or benefit to which Section 65E(1) or 47(1)(d) of the Act applies–

(a) he shall complete and lodge with the employer and the Commissioner General a declaration disclosing the particulars of the allowance or benefit provided; and

(b) he shall, where he has lodged a declaration under Paragraph (a), and following such lodgement there has been a change in circumstances or particulars affecting the allowance or benefit, lodge a further declaration disclosing the change.

(8)[12] [Repealed.]

66F. OPERATION OF DECLARATIONS.

(1) Where an employee furnishes a declaration under this Subdivision to his employer, the employer is, subject to this Regulation, required to commence to give effect to that declaration for the purposes of this Subdivision–

(a) where the declaration is furnished by the employee on the first day of his employment with the employer–on the date of the first payment of salary or wages to the employee; or

(b) in any other case–not later than the date of the first payment of salary or wages to the employee after the close of the first pay period that commences after the declaration is furnished.

(2) Where a declaration under this Subdivision in a form that relates to a particular fiscal year is furnished to an employer or to the Commissioner General before the first day of that fiscal year, the provisions of this Subdivision (other than Sections 66D(2) and 66E(4)) apply as if that declaration had been made and furnished on the first day of that fiscal year.

(3) Subject to Subsection (6), where, after having furnished a declaration under this Subdivision to his employer, an employee directs his employer, in writing, to disregard the declaration, the declaration shall not have effect for the purposes of this Subdivision in relation to payments of salary or wages to the employee after the last payment of salary or wages to the employee before the close of the first pay period that ends after the date on which the employee so directs his employer.

(4) Subject to Subsection (6), where, after having furnished a declaration under this Subdivision to his employer, an employee furnishes a further declaration under this Subdivision to his employer, the first-mentioned declaration shall not have effect for the purposes of this Subdivision in relation to payments of salary or wages to the employee on and after the date on which the employer commences to give effect to the further declaration for the purposes of this Subdivision.

(5) Where, after having furnished a declaration under this Subdivision to his employer, an employee’s employment with that employer is terminated, that declaration shall not have effect for the purposes of this Subdivision in relation to payments of salary or wages to the employee in respect of any period of employment with that employer after the date of that termination.

(6) Subject to this Subdivision, a declaration under this Subdivision furnished by an employee to his employer shall, unless it sooner ceases to have effect for the purposes of this Subdivision by virtue of Subsection (3), (4) or (5), have effect for the purposes of this Subdivision only to and including–

(a) the date on which the last payment of salary or wages to that employee is made before 1 January next following the date on which the declaration was furnished; or

(b) if the Commissioner General, by notice in the National Gazette, determines a date for the purposes of this subsection in relation to declarations under this Subdivision–the date on which the last payment of salary or wages to that employee is made before the date so determined.

(7) The Commissioner General may, by notice in the National Gazette determine a date for the purposes of Subsection (6) in relation to declarations under this Subdivision being a date later than the 1 January referred to in that subsection.

66G. OBLIGATIONS OF EMPLOYER IN RELATION TO DECLARATIONS.

Where an employer is finished with a declaration under this subdivision, he shall–

(a) countersign the original and the duplicate in the space provided on the form; and

(b) within 28 days of the date of receipt of the declaration or such other date as the Commissioner General allows, forward the original declaration to the Commissioner General; and

(c) retain in his records the duplicate of the declaration for at least seven years from the date the declaration was made.

Subdivision B. – Group Employers.

  1. APPLICATION FOR REGISTRATION AS A GROUP EMPLOYER.

An application for registration as a group employer shall be signed by the applicant and shall be made at the office of the Commissioner General in the National Capital District.

67A. GROUPS.

(1) The Commissioner General may register all employees, or any class of employees, of a group employer as a group for the purposes of this Regulation, and may allot a registration number in respect of the group, and shall notify the group employer accordingly.

(2) The Commissioner General may, at any time, by notice in writing to the employer concerned, cancel the registration of any group, and the employee or the class of employees included in that group shall thereupon cease to be a group for the purposes of this Regulation.

67B. METHOD OF PAYMENT TO COMMISSIONER GENERAL.

A group employer required to pay an amount to the Commissioner General may pay that amount–

(a) by delivery of cash, bank notes or cheques at the office of the Commissioner General; or

(b) by remitting the amount to the Commissioner General by bank draft or cheque or by postal money order or postal note payable in the National Capital District.

67C. REMITTANCE CERTIFICATE.

A group employer shall, at the time of paying to the Commissioner General an amount deducted from the salaries or wages of employees included in a group, furnish to the Commissioner General a certificate in a form approved by the Commissioner General, and signed by the employer, that the amount so paid is the total amount so deducted during the period specified in the certificate.

67D. ANNUAL STATEMENT OF DEDUCTIONS.

The statement referred to in Section 299G(4)(f)(ii) of the Act shall, where the employees are in more groups than one, be furnished in separate parts, with one part in respect of each group, and the statement, or each part of the statement, as the case may be, shall–

(a) show the deductions in respect of the employees included in the group; and

(b) reconcile the total of the amounts deducted as set out in the statement with the total of the sums paid to the Commissioner General by the group employer on account of those amounts; and

(c) include a certificate signed by the group employer certifying that the information contained in the statement is correct.

67E. ISSUE OF STATEMENTS OF EARNINGS.

(1) A group employer who is required to issue a statement of earnings to a person who is or has been an employee shall sign the statement of earnings, and may issue it–

(a) by causing it to be delivered to that person personally; or

(b) by posting it by prepaid letter post addressed to that person at his last-known address.

(2) Where a statement of earnings that has been posted in accordance with this section is returned to the group employer undelivered, he shall forward the statement of earnings to the Commissioner General not later than–

(a) 30 April next following the end of the fiscal year in which the deductions covered by the statement of earnings were made; or

(b) seven days after the date of the return of the statement of earnings,

whichever is the later.

(3) A group employer shall include in every statement of earnings issued by him particulars of–

(a) the total salary or wages paid to the person to whom the statement of earnings is issued during the period covered by the statement of earnings; and

(b) the value of board or residence provided for, or allowance made to, that person during that period.

67F. SIGNATURES BY OR FOR GROUP EMPLOYERS.

(1) A document required by this Regulation to be signed by a group employer shall be signed–

(a) in the case of an individual–by that individual; and

(b) in the case of trustees–by the senior active trustee resident in Papua New Guinea, or, where there is no active trustee resident in Papua New Guinea, by the agent in Papua New Guinea of the trustees; and

(c) in the case of a company–by the public officer of the company; and

(d) in the case of the State–by an officer appointed for the purpose by the Secretary for Finance; and

(e) in the case of a municipal corporation, local government body or public authority–by an officer authorized by that corporation, local government body or authority.

(2) Where it is not possible or practicable for the person specified in Subsection (1) personally to sign all such documents, that person may authorize, in writing, another person to sign any such documents.

(3) A group employer shall forward to the Commissioner General a specimen signature, on a form approved by the Commissioner General, of every person authorized by or under this Regulation to sign documents in relation to a group, together with particulars of his name and of the capacity in which he acts, and a person so authorized shall not sign a document referred to in Subsection (1) until his specimen signature has been so furnished.

(4) The Commissioner General may, if he thinks fit, by notice in writing to the group employer, disapprove of the authorization of a person under Subsection (2), and thereafter that person shall not sign a document referred to in Subsection (1).

(5) Where a person authorized by or under this Regulation to sign documents in relation to any group ceases (otherwise than in pursuance of Subsection (4)) to be so authorized, the group employer shall, within 14 days thereafter, notify the Commissioner General accordingly.

Division 5.

Collection of Prescribed Product (Withholding) Tax.

  1. AMOUNT OF DEDUCTION.

(1) For the purposes of Section 312C of the Act, the amount of the deduction to be made from the gross income from the sale of a prescribed product and payable under that section is the amount prescribed in Section 10B(2) as the rate of prescribed product (withholding) tax.

(2) Where a deduction has been made from the gross income from the sale of a prescribed product under Part VI.5 of the Act, the payer shall at the time when the gross income is paid by him to the vendor of the prescribed product, advise the vendor in writing of the amount of the prescribed product (withholding) tax which has been withheld.

68A. METHOD OF PAYMENT.

(1) A person who, under Section 312E(1)(a) of the Act, is required to pay an amount to the Commissioner General, may pay that amount–

(a) by delivery in cash, bank notes or cheques at the office of the Commissioner General; or

(b) by remitting the amount to the Commissioner General by cheque or bank draft or by forwarding a money order or postal order payable in Papua New Guinea.

(c)[13] [Repealed.]

(2) Where payment is made under Subsection (1), it shall be accompanied by an approved form showing the calculation of the sum paid duly completed by the authorized dealer.

68B. STATEMENT TO BE FURNISHED TO COMMISSIONER GENERAL.

A statement required to be furnished by a person to the Commissioner General under Section 312E(1)(b) of the Act shall be furnished to the Commissioner General at the Taxation Office in Port Moresby.

PART VII. – PENAL PROVISIONS AND PROSECUTIONS.

  1. CERTIFICATE AS TO FAILURE TO FURNISH A RETURN.

In any proceedings against a person for failing or neglecting duly to furnish a return, a certificate in writing signed by the Commissioner General, the Commissioner for Taxation or a prescribed delegate of the Commissioner General, certifying that a return has not been received from that person by any officer authorized by the Commissioner General to receive returns, is evidence that the defendant has failed or neglected duly to furnish a return.

  1. ORDER TO COMPLY WITH REQUIREMENT.

An order made by a court in pursuance of Section 315 of the Act may be served in the manner prescribed for the serving of notices by Regulation 91 of these Regulations.

  1. RIGHT OF TRIAL IN NATIONAL COURT.

The election that may be exercised by a defendant in pursuance of Section 324 of the Act shall so be exercised by serving on the Commissioner General and filing in the court in which the prosecution was instituted a notice in accordance with Form 8.

  1. ENFORCEMENT OF ORDERS FOR PAYMENT.

(1) Where an order for the payment of a sum of money by a person to the Commissioner General is made under Part VII of the Act by a court of summary jurisdiction, the Commissioner General may obtain from the clerk or other proper officer of the court a certificate under Section 339 of the Act.

(2) The certificate shall be in accordance with Form 9, and shall contain the following particulars:–

(a) the name and location of the court making the order;

(b) the name and address of the defendant;

(c) the date and amount of the order and the section of Part VII of the Act under which the order was made.

(3) Upon production of the certificate to the prothonotary, registrar or other proper officer of a court having jurisdiction to entertain civil proceedings to the amount of the order, that officer shall register the certificate by entering the particulars of the certificate in a book to be kept by him.

(4) A certificate shall not be registered after the lapse of 12 months from the date of the order to which it relates unless leave in that behalf has first been obtained from the court in which it is proposed to register the certificate.

PART VIII. – REGISTRATION OF TAX AGENTS.

  1. DEFINITIONS.

In this Part, unless the contrary intention appears–

“applicant” means an applicant for registration as a tax agent;

“the income tax laws of Australia” means the laws in force in Australia relating to taxes on income;

“the Registrar” means the Registrar of Tax Agents referred to in Section 343 of the Act.

  1. COMMUNICATIONS TO REGISTRAR.

All correspondence to the Registrar, including applications under the Act or these Regulations shall be addressed to the Registrar, in the care of the Commissioner General or at his office in Port Moresby.

  1. APPLICATIONS FOR REGISTRATION.

(1) An application for registration as a tax agent shall state–

(a) the full name and address of the applicant and, in addition, if the applicant is a partnership, the full name and address of each partner; and

(b) an address for service; and

(c) in the case of an application by a partnership or a company, the full name and address of, and an address for service for, each partner or person whom it is desired to register as a nominee or additional nominee of the tax agent; and

(d) the qualifications of the applicant, or, in the case of an application by a partnership or a company, of each partner or person referred to in Paragraph (c); and

(e) whether the applicant and–

(i) in the case of an application by a partnership–any partner; or

(ii) in the case of an application by a company–any person on behalf of the company,

is registered as a tax agent under the income tax laws of Australia, and, if so, particulars of the registration; and

(f) whether the applicant, and, in the case of an application by a partnership or a company, any member of the partnership, or any person whom it is desired to register as a nominee or additional nominee, has had his registration as a tax agent cancelled or refused under the income tax laws of Australia; and

(g) if the applicant proposes to carry on business at more than one office, the address of the head office and of each branch office.

(2) An applicant shall furnish to the Registrar such further information as the Registrar from time to time requires.

  1. APPLICATIONS FOR REGISTRATION OF ADDITIONAL OR SUBSTITUTED NOMINEES.

An application for the registration of an additional or substituted nominee of a partnership or company that is already registered as a tax agent under the Act shall state–

(a) the full name and address of the partnership or company making the application;

(b) the full name and address of, and an address for service for, each partner or person whom it is desired to register as an additional or substituted nominee;

(c) the qualifications of each partner or person referred to in Paragraph (b);

(d) whether the partner or person so referred to is registered as a tax agent under the income tax laws of Australia and, if so, particulars of the registration;

(e) whether the partner or person so referred to has had his registration as a tax agent cancelled or refused under the income tax laws of Australia; and

(f) any further information required by the Registrar.

  1. APPLICATION FOR EXEMPTION UNDER SECTION 349.

An applicant for exemption from the operation of Section 349 of the Act shall furnish to the Registrar his full name and address, an address for service and such further information as the Registrar from time to time requires.

  1. DECLARATION BY APPLICANT.

An application referred to in any of the last three preceding regulations shall be supported by a declaration, signed by the person or the members of the partnership making the application, stating that the information contained in the application is true and correct in every particular.

  1. PLACE OF LODGMENT OF APPLICATIONS.

An application–

(a) for registration as a tax agent; or

(b) for the registration of an additional or substituted nominee of a partnership company; or

(c) for exemption under Section 349(2) of the Act,

shall be lodged with the Registrar.

  1. CERTIFICATE OF REGISTRATION.

Where the Registrar registers a person or partnership as a tax agent under Section 346 of the Act, the Registrar shall issue a certificate of registration to that person or partnership.

  1. REGISTRAR TO NOTIFY COMMISSIONER GENERAL OF REGISTRATION.

Where the Registrar registers an applicant as a tax agent, or a person as a nominee, additional nominee or substituted nominee of a tax agent, the Registrar shall notify the Commissioner General accordingly.

  1. PUBLICATION OF NAMES OF TAX AGENTS.

As soon as convenient after 30 June in each year, the Commissioner General shall publish in the National Gazette the full names and addresses of persons and partnerships registered as tax agents.

  1. REGISTRAR TO NOTIFY COMMISSIONER GENERAL OF EXEMPTION OF CERTAIN TAX AGENTS.

Where the Registrar exempts any person or partnership from the operation of Section 349 of the Act, the Registrar shall issue a certificate of exemption to that person or partnership and notify the Commissioner General accordingly.

  1. RETURN OF CERTIFICATES OF REGISTRATION AND EXEMPTION.

(1) Where the Registrar has registered as a tax agent, or exempted from the operation of Section 349 of the Act, a person or partnership, the Registrar may, if he considers it necessary so to do–

(a) by reason of the cancellation of the registration or the lapse of the exemption; or

(b) for the purpose of the issue of a new certificate in lieu of an existing certificate, or the alteration of an existing certificate; or

(c) for any other purpose of the Act or of these Regulations,

by notice in writing, call upon that person or partnership, or, if that person has died, his personal representative, to return to the Registrar the certificate issued in pursuance of Section 80 or Section 83 as the case may be.

(2) A person, partnership or personal representative on whom a notice under this regulation is served shall, within 14 days after the service of the notice, return to the Registrar the certificate specified in the notice.

Penalty: K40.00.

  1. NOTIFICATION OF CHANGE OF ADDRESS.

(1) A registered tax agent shall forthwith give notice in writing to the Registrar of a change in the address for service of himself, and, in the case of a registered tax agent that is a company or a partnership, of a partner or person who is registered as a nominee, additional nominee or substituted nominee of the tax agent under Section 346 of the Act.

(2) A person who is exempted by the Registrar from the operation of Section 349 of the Act shall forthwith give notice in writing to the Registrar of a change in his address for service.

  1. SERVICE OF NOTICES, ETC.

A notice or other communication to any person or partnership by or on behalf of the Commissioner General or the Registrar, in relation to a matter arising under Part VIII of the Act or of this Part of these Regulations, may be given to or served upon him or it personally, or by pre-paid letter post at his or its address for service under this Part.

  1. CANCELLATION OF REGISTRATION OF TAX AGENT.

(1) Where the registration of a person or a partnership as a tax agent is cancelled by the Registrar, the Registrar shall forthwith give notice of the cancellation to the tax agent, or, if the registration was cancelled by reason of the death of the tax agent, to his personal representative, and to the Commissioner General, and, where the registration was cancelled by the Registrar in pursuance of Section 348(2) of the Act, the Commissioner General shall, after the expiration of the period for appeal prescribed by the next succeeding regulation, cause notice of the cancellation to be published in the National Gazette.

(2) Where, in pursuance of Section 348(6) of the Act, a person or partnership duly institutes an appeal within the prescribed time against a decision of the Registrar to cancel his or its registration–

(a) the Registrar may suspend the cancellation; and

(b) whether or not the Registrar has suspended the cancellation, notice of the cancellation shall not be published,

until the appeal has been withdrawn by, or determined against, the person or partnership.

  1. APPEALS IN CONNECTION WITH CANCELLATION OF REGISTRATION.

(1) An appeal under Section 348(6) of the Act shall be instituted, not later than 30 days after service of the notice of cancellation given in pursuance of Section 87, by–

(a) filing a notice of appeal in writing in the National Court; and

(b) serving a copy of the notice of appeal on the Registrar.

(2) The Registrar shall furnish to the Commissioner General a copy of any notice of appeal served on the Registrar by a person or partnership, or served by the Registrar, in pursuance of this regulation.

(3) On the hearing of an appeal under Section 348 of the Act, the Commissioner General may, if he so desires, be represented by counsel.

  1. NOTIFICATION OF PERSON CEASING TO BE NOMINEE OF REGISTERED TAX AGENT.

Where a person ceases to be a nominee, additional nominee or substituted nominee of a partnership or a company that is registered as a tax agent, the Registrar shall notify the Commissioner General accordingly.

  1. EVIDENCE.

(1) For the purposes of Part VIII of the Act, the Registrar–

(a) may take oral evidence on oath or affirmation, and for that purpose has power to administer oaths and affirmations; and

(b) may permit evidence to be given by affidavit but may require the deponent to attend for the purpose of being cross-examined; and

(c) may receive, without formal proof, a copy, duly certified as correct by a responsible officer of a bank, of a person’s account with that bank, and may take into consideration an entry or particular contained in the copy of the account; and

(d) may receive, without formal proof, a copy, duly certified as correct by a responsible officer of the State or any government or of any public, municipal or other local body or authority within Papua New Guinea, of a document in the possession of the State or that government, body or authority, as the case may be, and may take into consideration any statement or particular contained in the copy of that document; and

(e) may receive, without formal proof, any other document containing any statement or particular that, in his opinion, is relevant to the application or other matter under consideration (not being a document that has been brought into existence solely for the purpose of the application or other matter under consideration), and may take into consideration the statement or particular.

(2) The Registrar may, by notice in writing, require a person–

(a) to furnish the Registrar with such information as is specified in the notice relating to an application or other matter before the Registrar;

(b) to attend and give evidence before the Registrar concerning an application or other matter before the Registrar, and may require him to produce all books, documents and other papers in his custody or under his control that, in the opinion of the Registrar, are likely to contain information or particulars relating to the application or matter,

and the person shall comply with the notice accordingly.

(3) The Registrar may require the information or evidence to be given on oath, and either orally or in writing, and for that purpose has power to administer an oath or affirmation.

(4) The expenses to be allowed to a person required to attend and give evidence under this regulation shall be as prescribed by Section 96.

(5) Where a person is required to attend in consequence of a request made by or on behalf of an applicant or a tax agent, the expenses of that person shall be payable by that applicant or tax agent.

PART IX. – MISCELLANEOUS.

Division 2.

Exchange Control-Taxation Certificates.

90A. TAX CLEARANCE CERTIFICATE.

For the purposes of Section 354B and 354C of the Act, a tax clearance certificate is required for any transactions which, separately or together, involve or bring about directly or indirectly, the transfer out of Papua New Guinea in any fiscal year of more than K15,000.00 (or its equivalent in foreign currency).

Division 3.

Miscellaneous.

  1. SERVICE OF NOTICES, ETC.

A notice or other communication by or on behalf of the Commissioner General may be served upon a person–

(a) by causing it to be personally served on him; or

(b) by leaving it at his address for service; or

(c) by posting it addressed to him at his address for service.

91A. ELIGIBLE PAYMENTS FOR THE PURPOSES OF DIVISION IX.2A OF THE ACT.

(1) A payment is an eligible payment within the meaning of Division IX.2A of the Act, where it is made or is liable to be made under a contract which in whole or in part is for the carrying out of or the provision of work involving any of the following activities:–

(a) the construction, erection, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of any structure, roadworks or thoroughfare and, without limiting the generality of the foregoing, applies to–

(i) the painting, decorating, proofing or other treatment of the internal or external surfaces of any structure other than signwriting or the production of murals or other similar works; and

(ii) the installation in, or the fixing or fitting in or to, any structure of–

(A) a system or device for, heating, cooking, refrigeration, insulation, lighting, power supply, water supply, irrigation, sanitation, drainage, fire or security protection, sound communication, air-conditioning, ventilation, or any other system or device forming or to form an integral part of structure; or

(B) walls, ceilings, linings or floors of any description; or

(C) roof-tiles, ceramic tiles, quarry tiles, stone, or any other interior or exterior cladding or covering of any description; or

(D) any built-in furniture, any electrical or plumbing fittings (including kitchen or sanitary ware) so as to become fixtures; and

(iii) internal or external cleaning that is carried out in the course of, or in connection with the construction, erection, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of any structure, roadworks or thoroughfare; and

(iv) any other activity, being an activity carried out on a structure or on land on which a structure is to be located or on roadworks or thoroughfares or on land on which roadworks or thoroughfares are to be located, that forms an integral part of, is preparatory to, or is for rendering complete any of the activities referred to in this Paragraph other than in this subparagraph and, without limiting the generality of the foregoing, includes site clearance, earthmoving, excavation, laying of foundations, erection of scaffolding, site restoration, landscaping or access works; and

(v) the provision of building and construction services of a professional nature (including the preparation of plans and specifications) performed in connection with any of the above activities;

(b) the transportation by road of goods or materials (including construction materials, agricultural produce, livestock, waste, natural resources or merchandise of any description);

(c) the reconditioning, servicing, repair or maintenance of a motor vehicle or of any component, accessory or part of a motor vehicle, or the painting of a motor vehicle or of any component, accessory or part of a motor vehicle in connection with such reconditioning, servicing, repair or maintenance, including the removal of fittings or replacement of any component, accessory or part of a motor vehicle;

(d) the construction of items of joinery (including veneering, laminating, polishing, staining or painting of cupboards or cabinets) that are to become fixtures in any structure;

(e) the provision of architectural services (including the preparation of plans and specifications);

(f) the provision of surveying services (including the preparation of plans and specifications);

(g) the provision of engineering services (including the preparation of plans and specifications);

(h) the cleaning and maintenance of–

(i) office, business, residential, institutional or any other premises or any part of such premises, including windows, furniture, fixtures and fittings; and

(ii) roadways, thoroughfares, venues and other places including recreational, sporting or other venues;

(i) the provision of security services;

(ia) the provision of advertizing or signwriting services;

(j) the provision of entertainment being any activity or performance, including performances or appearances on or for radio, television, or any film–

(i) in connection with any sporting event or competition of any nature, including motor racing, motor car rallying, motor cycle racing, motor boat racing, and horse racing; or

(ii) in connection with lectures, speeches, or talks for any purpose, whether on a regular or casual basis; or

(iii) in connection with any performance by actors, entertainers, musicians, singers, dancers, comperes or other artistes whether regular or casual performers, and whether alone or with any other person or persons in choirs, choruses, bands, orchestras, ballets, or other entertainment groups and whether for the purpose of education or culture or religion or entertainment or any other purpose whatsoever;

(k) the provision of professional services or services as an adviser, consultant or manager.

(2) A contract prescribed for the purposes of Division IX.2A of the Act includes a contract for non-work arrangements such as hire or leasing of equipment including all forms of motor vehicle or machinery, or other arrangement by which assessable income is derived.

  1. SIGNATURES.

A notice to be given by the Commissioner General may be given by any officer duly authorized by the Commissioner General in that behalf, and a notice purporting to be signed by the authority of the Commissioner General shall be as valid and effectual for all purposes as if signed by the Commissioner General in person.

  1. APPOINTMENT OF PRESCRIBED DELEGATE.

The Commissioner General may, by notice published in the National Gazette appoint a person to be a prescribed delegate of the Commissioner General for the purposes of these Regulations.

  1. SIGNATURE DEEMED TO BE DULY SIGNED.

(1) A certificate, notice or other document, bearing the written, stamped or printed signature of the Commissioner General, an Assistant Commissioner or a prescribed delegate of the Commissioner General, shall, until the contrary is proved, be deemed to have been duly signed by the person by whom it purports to have been signed.

(2) Judicial notice shall be taken of every such signature and of the fact that the person whose signature it purports to be holds or has held the office of Commissioner General, Assistant Commissioner or prescribed delegate of the Commissioner General, as the case may be.

94A[14]. [REPEALED.]

  1. APPOINTMENT OF PUBLIC OFFICER.

When the position of public officer of a company becomes vacant, and it is necessary for a new public officer to be appointed, the notice of appointment by the company of a new public officer shall be given to the Commissioner General at his office at Port Moresby.

  1. EXPENSES OF PERSONS REQUIRED TO ATTEND AND GIVE EVIDENCE.

Where a person (other than the taxpayer or a representative of the taxpayer concerning whom the evidence is required) is required under Section 366 of the Act to attend and give evidence before the Commissioner General or an officer authorized by him, there may be allowed to that person the sum (not exceeding in any case K21.00 per day) actually and necessarily lost by him by reason of his attendance, and in addition (if he resides more than four miles from the place at which he is required to attend) such sum for travelling expenses (not exceeding the sum actually paid) as the person conducting the inquiry thinks reasonable.

  1. AMOUNT OF PENALTY.

A person who is guilty of a contravention or failure to comply with a provision of these Regulations for which no penalty is expressly provided is guilty of an offence against these Regulations punishable upon conviction by a fine not exceeding K40.00.

  1. FEE FOR MEDICAL EXAMINATION.

(1) Where application is made to a medical officer of the Public Service for a certificate referred to in Section 213A(1) of the Act, there is payable in advance to the Department concerned for the examination of the person–

(a) where the examination is made at the office or the surgery of a medical officer of the Public Service or at some other place in the country–the fee prescribed under such Regulations by which the medical officer operates and is required to charge; or

(b) where the examination is made in a public hospital–the fee prescribed in Division 2 of Part I of the Schedule to the Public Hospitals (Charges) Regulation 1956, as in force from time to time;

(c - d)[15] [Repealed.]

(2) For the purposes of the last preceding subregulation, “public hospital” means a hospital declared to be a public hospital for the purposes of the Public Hospital (Charges) Act 1955.

  1. [16][REPEALED.]
  2. CHARGES FOR PHOTOCOPYING.

(1) The Commissioner General may, at the request of any person entitled to receive the information, make photocopies of documents lodged with him for supply to that person.

(2) The Commissioner General may charge an amount not exceeding 50 toea per page for the supply of the photocopies referred to in Subsection (1).

SCHEDULE 1

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 1 – Officer’s Oath of Secrecy.

Sec. 9,Reg. 4.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 2 – Officer’s Declaration of Secrecy.

Sec. 9,Reg. 4.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 3 – Notice of option as to basis of valution of live stock.

Sec. 54,Reg. 8.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 4 – Notice of selection of cost price of natural increase.

Sec. 56,Reg. 8.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 5 – Particulars relating to sources of information.

Sec. 227,Reg. 33

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 6 – Notice of objection against assessment.

Sec. 245,Reg. 34.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 6A – Application for review by the Tribunal.

(See Regulation 34)

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 7 – Order.

Sec. 274,Reg. 51.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 8 – Notice of election by defendant to have a taxation prosecution tried in the National Court.

Sec. 324,Reg. 71.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 9 – Certificate of order under the Income Tax Act 1959.

Sec. 339,Reg. 72.

PAPUA NEW GUINEA.

Income Tax Act 1959.

Form 10 – Salary of Wages Tax–Declaration.

Reg. 66A.

SCHEDULE 2

Section 117(4)Reg 10.

Table showing the sum that, if invested annually at 5 per centum per annum compound interest, would amount to K1.00 at the end of any number of years from 1 to 99.

(Annual investment made at the commencement of each year.)

Years.
Amounts.
K
Years.
Amounts.
K
Years.
Amounts.
K
1
.952381
34
.011195
67
.001884
2
.464576
35
.010545
68
.001790
3
.302104
36
.009937
69
.001702
4
.220964
37
.009371
70
.001618
5
.172357
38
.008842
71
.001539
6
.140016
39
.008348
72
.001463
7
.116971
40
.007884
73
.001391
8
.099735
41
.007450
74
.001324
9
.086371
42
.007043
75
.001259
10
.075719
43
.006660
76
.001197
11
.067037
44
.006301
77
.001139
12
.059833
45
.005964
78
.001084
13
.053768
46
.005646
79
.001030
14
.048594
47
.005347
80
.000981
15
.044135
48
.005065
81
.000933
16
.040257
49
.004800
82
.000888
17
.036856
50
.004550
83
.000845
18
.033853
51
.004313
84
.000804
19
.031186
52
.004090
85
.000765
20
.028803
53
.003879
86
.000728
21
.026663
54
.003680
87
.000692
22
.024734
55
.003492
88
.000659
23
.022988
56
.003314
89
.000628
24
.021401
57
.003146
90
.000597
25
.019954
58
.002987
91
.000569
26
.018632
59
.002836
92
.000541
27
.017421
60
.002693
93
.000515
28
.016308
61
.002558
94
.000490
29
.015282
62
.002430
95
.000467
30
.014334
63
.002309
96
.000444
31
.013459
64
.002194
97
.000423
32
.012648
65
.002085
98
.000403
33
.011895
66
.001982
99
.000383

SCHEDULE 3

Section 277,Regulation 55/56

This Schedule does not apply to salary or wages derived after 1 January 1980 - see r53A.

Table A.

Salary per Week
Number of Dependents
Exceeding
Not Exceeding
None
1
2
3
4 or More
18.00
18.50
0.16
0.00
0.00
0.00
0.00
18.50
19.00
0.40
0.00
0.00
0.00
0.00
19.00
19.50
0.65
0.00
0.00
0.00
0.00
19.50
20.00
0.81
0.00
0.00
0.00
0.00
20.00
20.50
0.85
0.00
0.00
0.00
0.00
20.50
21.00
0.89
0.03
0.00
0.00
0.00
21.00
21.50
0.93
0.07
0.00
0.00
0.00
21.50
22.00
0.97
0.11
0.00
0.00
0.00
22.00
22.50
1.01
0.14
0.00
0.00
0.00
22.50
23.00
1.05
0.18
0.00
0.00
0.00
23.00
23.50
1.09
0.22
0.00
0.00
0.00
23.50
24.00
1.13
0.26
0.00
0.00
0.00
24.00
24.50
1.17
0.30
0.00
0.00
0.00
24.50
25.00
1.21
0.34
0.00
0.(0
0.00
25.00
25.50
1.25
0.38
0.00
0.00
0.00
25.50
26.00
1.29
0.42
0.00
0.00
0.00
26.00
26.50
1.33
0.46
0.00
0.00
0.00
26.50
27.00
1.37
0.50
0.00
0.00
0.00
27.00
27.50
1.41
0.54
0.00
0.00
0.00
27.50
28.00
1.45
0.58
0.00
0.00
0.00
28.00
28.50
1.49
0.62
0.04
0.00
0.00
28.50
29.00
1.53
0.66
0.08
0.00
0.00
29.00
29.50
1.56
0.70
.0.12
0.00
0.00
29.50
30.00
1.60
0.74
0.16
0.00
0.00
30.00
30.50
1.64
0.78
0.20
0.00
0.00
30.50
31.00
1.68
0.82
0.24
0.00
0.00
31.00
31.50
1.72
0.86
0.28
0.00
0.00
31.50
32.00
1.76
0.90
0.32
0.00
0.00
32.00
32.50
1.80
0.94
0.36
0.00
0.00
32.50
33.00
1.84
0.98
0.40
0.00
0.00
33.00
33.50
1.88
1.02
0.44
0.00
0.00
33.50
34.00
1.92
1.06
0.48
0.00
0.00
34.00
34.50
1.96
1.10
0.52
0.00
0.00
34.50
35.00
2.00
1.13
0.56
0.00
0.00
35.00
35.50
2.04
1.17
0.60
0.02
0.00
35.50
36.00
2.08
1.21
0.64
0.06
0.00
36.00
36.50
2.12
1.25
0.68
0.10
0.00
36.50
37.00
2.16
1.29
0.72
0.14
0.00
37.00
37.50
2.20
1.33
0.76
0.18
0.00
37.50
38.00
2.24
1.37
0.80
0.22
0.00
38.00
38.50
2.28
1.41
0.84
0.26
0100
38.50
39.00
2.32
1.46
0.88
0.30
0.00
39.00
39.50
2.38
1.52
0.94
0.36
0.00
39.50
40.00
2.44
1.58
1.00
0.42
0.00
40.00
40.50
2.50
1.64
1.06
0.48
0.00
40.50
41.00
2.56
1.70
1.12
0.54
0.00
41.00
41.50
2.62
1.75
1.18
0.60
0.02
41.50
42.00
2.68
1.81
1.24
0.66
0.08
42.00
42.50
2.74
1.87
1.30
0.72
0.14
42.50
43.00
2.80
1.93
1.36
0.78
0.20
43.00
43.50
2.86
1.99
1.42
0.84
0.26
43.50
44.00
2.92
2.05
1.47
0.90
0.32
44.00
44.50
2.98
2.11
1.53
0.96
0.38
44.50
45.00
3.04
2.17
1.59
1.02
0.44
45.00
45.50
3.10
2.23
1.65
1.08
0.50
45.50
46.00
3.15
2.29
1.71
1.14
0.56
46.00
46.50
3.21
2.35
1.77
1.19
0.62
46.50
47.00
3.27
2.41
1.83
1.25
0.68
47.00
47.50
3.33
2.47
1.89
1.31
0.74
47.50
48.00
3.39
2.53
1.95
1.37
0.80
48.00
48.50
3.45
2.59
2.01
1.43
0.86
48.50
49.00
3.51
2.65
2.07
1.49
0.91
49.00
49.50
3.57
2.71
2.13
1.55
0.97
49.50
50.00
3.63
2.76
2.19
1.61
1.03
50.00
50.50
3.69
2.82
2.25
1.67
1.09
50.50
51.00
3.75
2.88
2.31
1.73
1.15
51.00
51.50
3.81
2.94
2.37
1.79
1.21
51.50
52.00
3.87
3.00
2.43
1.85
1.27
52.00
52.50
3.93
3.06
2.48
1.91
1.33
52.50
53.00
3.99
3.12
2.54
1.97
1.39
53.00
53.50
4.05
3.18
2.60
2.03
1.45
53.50
54.00
4.11
3.24
2.66
2.09
1.51
54.00
54.50
4.16
3.30
2.72
2.15
1.57
54.50
55.00
4.22
3.36
2.78
2.20
1.63
55.00
55.50
4.28
3.42
2.84
2.26
1.69
55.50
56.00
4.34
3.48
2.90
2.32
1.75
56.00
56.50
4.40
3.54
2.96
2.38
1.81
56.50
57.00
4.46
3.60
3.02
2.44
1.87
57.00
57.50
4.52
3.66
3.08
2.50
1.92
57.50
58.00
4.58
3.71
3.14
2.56
1.98
58.00
58.50
4.65
3.78
3.21
2.63
2.05
58.50
59.00
4.73
3.86
3.29
2.71
2.13
59.00
59.50
4.81
3.94
3.36
2.79
2.21
59.50
60.00
4.89
4.02
3.44
2.87
2.29
60.00
61.00
5.04
4.18
3.60
3.03
2.45
61.00
62.00
5.20
4.34
3.76
3.18
2.61
62.00
63.00
5.36
4.50
3.92
3.34
2.77
63.00
64.00
5.52
4.65
4.08
3.50
2.92
64.00
65.00
5.68
4.81
4.24
3.66
3.08
65.00
66.00
5.84
4.96
4.38
3.79
3.21
66.00
67.00
6.00
5.10
4.50
3.90
3.30
67.00
68.00
6.15
5.23
4.61
4.00
3.38
68.00
69.00
6.31
5.36
4.73
4.10
3.47
69.00
70.00
6.47
5.50
4.85
4.20
3.56
70.00
71.00
6.63
5.63
4.97
4.31
3.64
71.00
72.00
6.79
5.77
5.09
4.41
3.73
72.00
73.00
6.95
5.90
5.21
4.51
3.82
73.00
74.00
7.10
6.04
5.33
4.62
3.91
74.00
75.00
7.26
6.17
5.45
4.72
3.99
75.00
76.00
7.42
6.31
5.56
4.82
4.08
76.00
77.00
7.58
6.44
5.68
4.93
4.17
77.00
78.00
7.75
6.59
5.81
5.04
4.26
78.00
79.00
7.95
6.75
5.96
5.16
4.37
79.00
80.00
8.15
6.92
6.11
5.29
4.48
80.00
81.00
8.34
7.09
6.26
5.42
4.59
81.00
82.00
8.54
7.26
6.41
5.55
4.70
82.00
83.00
8.74
7.43
6.55
5.68
4.81
83.00
84.00
8.94
7.60
6.70
5.81
4.91
84.00
85.00
9.14
7.76
6.85
5.94
5.02
85.00
86.00
9.33
7.93
7.00
6.07
5.13
86.00
87.00
9.53
8.10
7.15
6.19
5.24
87.00
88.00
9.73
8.27
7.30
6.32
5.35
88.00
89.00
9.93
8.44
7.44
6.45
5.46
89.00
90.00
10.13
8.61
7.59
6.58
5.57
90.00
91.00
10.32
8.77
7.74
6.71
5.68
91.00
92.00
10.52
8.94
7.89
6.84
5.79
92.00
93.00
10.72
9.11
8.04
6.97
5.89
93.00
94.00
10.92
9.28
8.19
7.10
6.00
94.00
95.00
11.12
9.45
8.34
7.22
6.11
95.00
96.00
11.31
9.62
8.48
7.35
6.22
96.00
97.00
11.51
9.78
8.63
7.48
6.33
97.00
98.00
11.74
9.98
8.81
7.63
6.46
98.00
99.00
11.98
10.18
8.99
7.79
6.59
99.00
100.00
12.22
10.39
9.16
7.94
6.72
100.00
101.00
12.46
10.59
9.34
8.10
6.85
101.00
102.00
12.70
10.79
9.52
8.25
6.98
102.00
103.00
12.94
11.00
9.70
8.41
7.12
103.00
104.00
13.18
11.20
9.88
8.57
7.25
104.00
105.00
13.42
11.41
10.06
8.72
7.38
105.00
106.00
13.66
11.61
10.24
8.88
7.51
106.00
107.00
13.90
11.81
10.42
9.03
7.64
107.00
108.00
14.14
12.02
10.60
9.19
7.78
108.00
109.00
14.38
12.22
10.78
9.35
7.91
109.00
110.00
14.62
12.43
10.96
9.50
8.04
110.00
111.00
14.86
12.63
11.14
9.66
8.17
111.00
112.00
15.10
12.83
11.32
9.81
8.30
112.00
113.00
15.34
13.04
11.50
9.97
8.44
113.00
114.00
15.58
13.24
11.68
10.13
8.57
114.00
115.00
15.82
13.45
11.86
10.28
8.70
115.00
116.00
16.06
13.65
12.04
10.44
8.83
116.00
117.00
16.32
13.87
12.24
10.61
8.98
117.00
118.00
16.60
14.11
12.45
10.79
9.13
118.00
119.00
16.88
14.35
12.66
10.97
9.28
119.00
120.00
17.16
14.59
12.87
11.16
9.44
120.00
121.00
17.44
14.83
13.08
11.34
9.59
121.00
122.00
17.72
15.06
13.29
11.52
9.75
122.00
123.00
18.00
15.30
13.50
11.70
9.90
123.00
124.00
18.28
15.54
13.71
11.88
10.05
124.00
125.00
18.56
15.78
13.92
12.07
10.21
125.00
126.00
18.84
16.02
14.13
12.25
10.36
126.00
127.00
19.12
16.25
14.34
12.43
10.52
127.00
128.00
19.40
16.49
14.55
12.61
10.67
128.00
129.00
19.68
16.73
14.76
12.79
10.82
129.00
130.00
19.96
16.97
14.97
12.98
10.98
130.00
131.00
20.24
17.21
15.18
13.16
11.13
131.00
132.00
20.52
17.44
15.39
13.34
11.29
132.00
133.00
20.80
17.68
15.60
13.52
11.44
133.00
134.00
21.08
17.92
15.81
13.70
11.59
134.00
135.00
21.36
18.16
16.02
13.89
11.75
135.00
136.00
21.66
18.41
16.24
14.08
11.91
136.00
137.00
21.98
18.68
16.48
14.29
12.09
137.00
138.00
22.30
18.95
16.72
14.49
12.26
138.00
139.00
22.62
19.23
16.96
14.70
12.44
139.00
140.00
22.94
19.50
17.20
14.91
12.62
140.00
141.00
23.26
19.77
17.44
15.12
12.79
141.00
142.00
23.58
20.04
17.68
15.33
12.97
142.00
143.00
23.90
20.31
17.92
15.53
13.14
143.00
144.00
24.22
20.59
18.16
15.74
13.32
144.00
145.00
24.54
20.86
18.40
15.95
13.50
145.00
146.00
24.86
21.13
18.64
16.16
13.67
146.00
147.00
25.18
21.40
18.88
16.37
13.85
147.00
148.00
25.50
21.67
19.12
16.57
14.02
148.00
149.00
25.82
21.95
19.36
16.78
14.20
149.00
150.00
26.14
22.22
19.60
16.99
14.38
150.00
151.00
26.46
22.49
19.84
17.20
14.55
151.00
152.00
26.78
22.76
20.08
17.41
14.73
152.00
153.00
27.10
23.03
20.32
17.61
14.90
153.00
154.00
27.42
23.31
20.56
17.82
15.08
154.00
155.00
27.75
23.58
20.81
18.03
15.26
155.00
156.00
28.11
23.89
21.08
18.27
15.46
156.00
157.00
28.47
24.20
21.35
18.50
15.65
157.00
158.00
28.83
24.50
21.62
18.74
15.85
158.00
159.00
29.19
24.81
21.89
18.97
16.05
159.00
160.00
29.55
25.11
22.16
19.20
16.25
160.00
161.00
29.91
25.42
22.43
19.44
16.45
161.00
162.00
30.27
25.73
22.70
19.67
16.64
162.00
163.00
30.63
26.03
22.97
19.91
16.84
163.00
164.00
30.99
26.34
23.24
20.14
17.04
164.00
165.00
31.35
26.64
23.51
20.37
17.24
165.00
166.00
31.71
26.95
23.78
20.61
17.44
166.00
167.00
32.07
27.26
24.05
20.84
17.63
167.00
168.00
32.43
27.56
24.32
21.08
17.83
168.00
169.00
32.79
27.87
24.59
21.31
18.03
169.00
170.00
33.15
28.17
24.86
21.54
18.23
170.00
171.00
33.51
28.48
25.13
21.78
18.43
171.00
172.00
33.87
28.79
25.40
22.01
18.62
172.00
173.00
34.23
29.09
25.67
22.25
18.82
173.00
174.00
34.59
29.40
25.94
22.48
19.02
174.00
175.00
34.95
29.70
26.21
22.71
19.22
175.00
176.00
35.31
30.01
26.48
22.95
19.42
176.00
177.00
35.67
30.32
26.75
23.18
19.61
177.00
178.00
36.03
30.62
27.02
23.42
19.81
178.00
179.00
36.39
30.93
27.29
23.65
20.01
179.00
180.00
36.75
31.23
27.56
23.88
20.21
180.00
181.00
37.11
31.54
27.83
24.12
20.41
181.00
182.00
37.47
31.85
28.10
24.35
20.60
182.00
183.00
37.83
32.15
28.37
24.59
20.80
183.00
184.00
38.19
32.46
28.64
24.82
21.00
184.00
185.00
38.55
32.76
28.91
25.05
21.20
185.00
186.00
38.91
33.07
29.18
25.29
21.40
186.00
187.00
39.27
33.38
29.45
25.52
21.59
187.00
188.00
39.63
33.68
29.72
25.76
21.79
188.00
189.00
39.99
33.99
29.99
25.99
21.99
189.00
190.00
40.35
34.29
30.26
26.22
22.19
190.00
191.00
40.71
34.60
30.53
26.46
22.39
191.00
192.00
41.07
34.91
30.80
26.69
22.58
192.00
193.00
41.43
35.21
31.07
26.93
22.78
193.00
194.00
41.79
35.52
31.34
27.16
22.98
194.00
195.00
42.15
35.82
31.61
27.39
23.18
195.00
196.00
42.51
36.13
31.88
27.63
23.38
196.00
197.00
42.87
36.44
32.15
27.86
23.57
197.00
198.00
43.23
36.74
32.42
28.10
23.77
198.00
199.00
43.59
37.05
32.69
28.33
23.97
199.00
200.00
43.95
37.35
32.96
28.56
24.17
200.00
201.00
44.31
37.66
33.23
28.80
24.37
201.00
202.00
44.67
37.97
33.50
29.03
24.56
202.00
203.00
45.03
38.27
33.77
29.27
24.76
203.00
204.00
45.39
38.58
34.04
29.50
24.96
204.00
205.00
45.75
38.88
34.31
29.73
25,16
205.00
206.00
46.11
39.19
34.58
29.97
25.36
206.00
207.00
46.47
39.50
34.85
30.20
25.55
207.00
208.00
46.83
39.80
35.12
30.44
25.75
208.00
209.00
47.19
40.11
35.39
30.67
25.95
209.00
210.00
47.55
40.41
35.66
30.90
26.15
210.00
211.00
47.91
40.72
35.93
31.14
26.35
211.00
212.00
48.27
41.05
36.25
31.44
26.63
212.00
213.00
48.63
41.41
36.61
31.80
26.99
213.00
214.00
48.99
41.77
36.97
32.16
27.35
214.00
215.00
49.35
42.13
37.33
32.52
27.71
215.00
216.00
49.71
42.49
37.69
32.88
28.07
216.00
217.00
50.07
42.85
38.05
33.24
28.43
217.00
218.00
50.43
43.21
38.41
33.60
28.79
218.00
219.00
50.79
43.57
38.77
33.96
29.15
219.00
220.00
51.15
43.93
39.13
34.32
29.51
220.00
221.00
51.51
44.29
39.49
34.68
29.87
221.00
222.00
51.87
44.65
39.85
35.04
30.23
222.00
223.00
52.23
45.01
40.21
35.40
30.59
223.00
224.00
52.59
45.37
40.57
35.76
30.95
224.00
225.00
52.95
45.73
40.93
36.12
31.31
225.00
227.00
53.31
46.09
41.29
36.48
31.67
226.00
227.00
53.67
46.45
41.65
36.84
32.03
227.00
228.00
54.03
46.81
42.01
37.20
32.39
228.00
229.00
54.39
47.17
42.37
37.56
32.75
229.00
230.00
54.75
47.53
42.73
37.92
33.11
230.00
231.00
55.11
47.89
43.09
38.28
33.47
231.00
232.00
55.47
48.26
43.46
38.65
33.84
232.00
233.00
55.87
48.66
43.86
39.05
34.24
233.00
234.00
56.27
49.06
44.26
39.45
34.64
234.00
235.00
56.67
49.46
44.66
39.85
35.04
235.00
236.00
57.07
49.86
45.06
40.25
35.44
236.00
237.00
57.47
50.26
45.46
40.65
35.84
237.00
238.00
57.87
50.66
45.86
41.05
36.24
238.00
239.00
58.27
51.06
46.26
41.45
36.64
239.00
240.00
58.67
51.46
46.66
41.85
37.04
240.00
241.00
59.07
51.86
47.06
42.25
37.44
241.00
242.00
59.47
52.26
47.46
42.65
37.84
242.00
243.00
59.87
52.66
47.86
43.05
38.24
243.00
244.00
60.27
53.06
48.26
43.45
38.64
244.00
245.00
60.67
53.46
48.66
43.85
39.04
245.00
246.00
61.07
53.86
49.06
44.25
39.44
246.00
247.00
61.47
54.26
49.46
44.65
39.84
247.00
248.00
61.87
54.66
49.86
45.05
40.24
248.00
249.00
62.27
55.06
50.26
45.45
40.64
249.00
250.00
62.67
55.46
50.66
45.85
41.04
250.00
251.00
63.07
55.86
51.06
46.25
41.44
251.00
252.00
63.47
56.26
51.46
46.65
41.84
252.00
253.00
63.87
56.66
51.86
47.05
42.24
253.00
254.00
64.27
57.06
52.26
47.45
42.64
254.00
255.00
64.67
57.46
52.66
47.85
43.04
255.00
256.00
65.07
57.86
53.06
48.25
43.44
256.00
257.00
65.47
58.26
53.46
48.65
43.84
257.00
258.00
65.87
58.66
53.86
49.05
44.24
258.00
259.00
66.27
59.06
54.26
49.45
44.64
259.00
260.00
66.67
59.46
54.66
49.85
45.04
260.00
261.00
67.07
59.86
55.06
50.25
45.44
261.00
262.00
67.47
60.26
55.46
50.65
45.84
262.00
263.00
67.87
60.66
55.86
51.05
46.24
263.00
264.00
68.27
61.06
56.26
51.45
46.64
264.00
265.00
68.67
61.46
56.66
51.85
47.04
265.00
266.00
69.07
61.86
57.06
52.25
47.44
266.00
267.00
69.47
62.26
57.46
52.65
47.84
267.00
268.00
69.87
62.66
57.86
53.05
48.24
268.00
269.00
76.27
63.06
58.26
53.45
48.64
269.00
270.00
70.67
63.46
58.66
53.85
49.04
270.00
271.00
71.07
63.86
59.06
54.25
49.44
271.00
272.00
71.47
64.26
59.46
54.65
49.84
272.00
273.00
71.87
64.66
59.86
55.05
50.24
273.00
274.00
72.27
65.06
60.26
55.45
50.64
274.00
275.00
72.67
65.46
60.66
55.85
51.04
275.00
276.00
73.07
65.86
61.06
56.25
51.44
276.00
277.00
73.47
66.26
61.46
56.65
51.84
277.00
278.00
73.87
66.66
61.86
57.05
52.24
278.00
279.00
74.27
67.06
62.26
57.45
52.64
279.00
280.00
74.67
67.46
62.66
57.85
53.04
280.00
281.00
75.07
67.86
63.06
58.25
53.44
281.00
282.00
75.47
68.26
63.46
58.65
53.84
282.00
283.00
75.87
68.66
63.86
59.05
54.24
283.00
284.00
76.27
69.06
64.26
59.45
54.64
284.00
285.00
76.67
69.46
64.66
59.85
55.04
285.00
286.00
77.07
69.86
65.06
60.25
55.44
286.00
287.00
77.47
70.26
65.46
60.65
55.84
287.00
288.00
77.87
70.66
65.86
61.05
56.24
288.00
289.00
78.27
71.06
66.26
61.45
56.64
289.00
290.00
78.67
71.46
66.66
61.85
57.04
290.00
291.00
79.07
71.86
67.06
62.25
57.44
291.00
292.00
79.47
72.26
67.46
62.65
57.84
292.00
293.00
79.87
72.66
67.86
63.05
58.24
293.00
294.00
80.27
73.06
68.26
63.45
58.64
294.00
295.00
80.67
73.46
68.66
63.85
59.04
295.00
296.00
81.07
73.86
69.06
64.25
59.44
296.00
297.00
81.47
74.26
69.46
64.65
59.84
297.00
298.00
81.87
74.66
69.86
65.05
60.24
298.00
299.00
82.27
75.06
70.26
65.45
60.64
299.00
300.00
82.67
75.46
70.66
65.85
61.04
300.00
301.00
83.07
75.86
71.06
66.25
61.44
301.00
302.00
83.47
76.26
71.46
66.65
61.84
302.00
303.00
83.87
76.66
71.86
67.05
62.24
303.00
304.00
84.27
77.06
72.26
67.45
62.64
304.00
305.00
84.67
77.46
72.66
67.85
63.04
305.00
306.00
85.07
77.86
73.06
68.25
63.44
306.00
307.00
85.47
78.26
73.46
68.65
63.84
307.00
308.00
85.87
78.66
73.86
69.05
64.24
308.00
309.00
86.29
79.08
74.27
69.46
64.65
309.00
310.00
86.73
79.52
74.71
69.90
65.09
310.00
311.00
87.17
79.96
75.15
70.34
65.53
311.00
312.00
87.61
80.40
75.59
70.78
65.97
312.00
313.00
88.05
80.84
76.03
71.22
66.41
313.00
314.00
88.49
81.28
76.47
71.66
66.85
314.00
315.00
88.93
81.72
76.91
72.10
67.29
315.00
316.00
89.37
82.16
77.35
72.54
67.73
316.00
317.00
89.81
82.60
77.79
72.98
68.17
317.00
318.00
90.25
83.04
78.23
73.42
68.61
318.00
319.00
90.69
83.48
78.67
73.86
69.05
319.00
320.00
91.13
83.92
79.11
74.30
69.49
320.00
321.00
91.57
84.36
79.55
74.74
69.93
321.00
322.00
92.01
84.80
79.99
75.18
70.37
322.00
323.00
92.45
85.24
80.43
75.62
70.81
323.00
324.00
92.89
85.68
80.87
76.06
71.25
324.00
325.00
93.33
86.12
81.31
76.50
71.69
325.00
326.00
93.77
86.56
81.75
76.94
72.13
326.00
327.00
94.21
87.00
82.19
77.38
72.57
327.00
328.00
94.65
87.44
82.63
77.82
73.01
328.00
329.00
95.09
87.88
83.07
78.26
73.45
329.00
330.00
95.53
88.32
83.51
78.70
73.89
330.00
331.00
95.97
88.76
83.95
79.14
74.33
331.00
332.00
96.41
89.20
84.39
79.58
74.77
332.00
333.00
96.85
89.64
84.83
80.02
75.21
333.00
334.00
97.29
90.08
85.27
80.46
75.65
334.00
335.00
97.73
90.52
85.71
80.90
76.09
335.00
336.00
98.17
90.96
86.15
81.34
76.53
336.00
337.00
98.61
91.40
86.59
81.78
76.97
337.00
338.00
99.05
91.84
87.03
82.22
77.41
338.00
339.00
99.49
92.28
87.47
82.66
77.85
339.00
340.00
99.93
92.72
87.91
83.10
78.29
340.00
341.00
100.37
93.16
88.35
83.54
78.73
341.00
342.00
100.81
93.60
88.79
83.98
79.17
342.00
343.00
101.25
94.04
89.23
84.42
79.61
343.00
344.00
101.69
94.48
89.67
84.86
80.05
344.00
345.00
102.13
94.92
90.11
85.30
80.49
345.00
346.00
102.57
95.36
90.55
85.74
80.93
346.00
347.00
103.01
95.80
90.99
86.18
81.37
347.00
348.00
103.45
96.24
91.43
86.62
81.81
348.00
349.00
103.89
96.68
91.87
87.06
82.25
349.00
350.00
104.33
97.12
92.31
87.50
82.69
350.00
351.00
104.77
97.56
92.75
87.94
83.13
351.00
352.00
105.21
98.00
93.19
88.38
83.57
352.00
353.00
105.65
98.44
93.63
88.82
84.01
353.00
354.00
106.09
98.88
94.07
89.26
84.45
354.00
355.00
106.53
99.32
94.51
89.70
84.89
355.00
356.00
106.97
99.76
94.95
90.14
85.33
356.00
357.00
107.41
100.20
95.39
90.58
85.77
357.00
358.00
107.85
100.64
95.83
91.02
86.21
358.00
359.00
108.29
101.08
96.27
91.46
86.65
359.00
360.00
108.73
101.52
96.71
91.90
87.09
360.00
361.00
109.17
101.96
97.15
92.34
87.53
361.00
362.00
109.61
102.40
97.59
92.78
87.97
362.00
363.00
110.05
102.84
98.03
93.22
88.41
363.00
364.00
110.49
103.28
98.47
93.66
88.85
364.00
365.00
110.93
103.72
98.91
94.10
89.29
365.00
366.00
111.37
104.16
99.35
94.54
89.73
366.00
367.00
111.81
104.60
99.79
94.98
90.17
367.00
368.00
112.25
105.04
100.23
95.42
90.61
368.00
369.00
112.69
105.48
100.67
95.86
91.05
369.00
370.00
113.13
105.92
101.11
96.30
91.49
370.00
371.00
113.57
106.36
101.55
96.74
91.93
371.00
372.00
114.01
106.80
101.99
97.18
92.37
372.00
373.00
114.45
107.24
102.43
97.62
92.81
373.00
374.00
114.89
107.68
102.87
98.06
93.25
374.00
375.00
115.33
108.12
103.31
98.50
93.69
375.00
376.00
115.77
108.56
103.75
98.94
94.13
376.00
377.00
116.21
109.00
104.19
99.38
94.57
377.00
378.00
116.65
109.44
104.63
99.82
95.01
378.00
379.00
117.09
109.88
105.07
100.26
95.45
379.00
380.00
117.53
110.32
105.51
100.70
95.89
380.00
381.00
117.97
110.76
105.95
101.14
96.33
381.00
382.00
118.41
111.20
106.39
101.58
96.77
382.00
383.00
118.85
111.64
106.83
102.02
97.21
383.00
384.00
119.29
112.08
107.27
102.46
97.65
384.00
385.00
119.73
112.52
107.71
102.90
98.09
385.00
386.00
120.18
112.97
108.16
103.36
98.55
386.00
387.00
120.66
113.45
108.64
103.84
99.03
387.00
388.00
121.14
113.93
109.12
104.32
99.51
388.00
389.00
121.62
114.41
109.60
104.80
99.99
389.00
390.00
122.10
114.89
110.08
105.28
100.47
390.00
391.00
122.58
115.37
110.56
105.76
100.95
391.00
392.00
123.06
115.85
111.04
106.24
101.43
392.00
393.00
123.54
116.33
111.52
106.72
101.91
393.00
394.00
124.02
116.81
112.00
107.20
102.39
394.00
395.00
124.50
117.29
112.48
107.68
102.87
395.00
396.00
124.98
117.77
112.96
108.16
103.35
396.00
397.00
125.46
118.25
113.44
108.64
103.83
397.00
398.00
125.94
118.73
113.92
109.12
104.31
398.00
399.00
126.42
119.21
114.40
109.60
104.79
399.00
400.00
126.90
119.69
114.88
110.08
105.27

Table B. – Where Employee’s Gross Salary or Wages per Week exceeds K400.00.

Employee’s Salary or Wages per week (including Board and Quarters).
AMOUNT OF WEEKLY INSTALMENTS TO BE DEDUCTED
(SEE EXAMPLE ON PAGE 1)
Exceeding
But Not Exceeding

1
2
3
K
K

400.00
577.00
K126.90 plus 48 toea for each K1.00 by which weekly salary exceeds K400.00.
577.00

K211.86 plus 50 toea for each K1.00 by which weekly salary exceeds K577.00.

Where a dependants declaration form has been furnished, the amount of deduction calculated in accordance with the table above is to be reduced by the amount set out below opposite the number of dependants as shown in that form.

1 Dependant
K7.21
2 Dependants
K12.02
3 Dependants
K16.83
4 or more Dependants
K21.63

Office of Legislative Counsel, PNG


  1. [1]Section 2 repealed by implication (Table of contents).
  2. [2]Section 5A(a) repealed by No 9 of 1988.
  3. [3]Section 5A Amended by S.R. 2006, No. 68.
  4. [4]Section 5B Amended by S.R. 2006, No. 68.
  5. [5]Section 5D repealed by No 24 of 1992.
  6. [6]Section 6B repealed by No. 15 of 1993.
  7. [7] repealed by No 15 of 1987.
  8. [8]Section 10F Substituted by S.R. 2001, No. 7.
  9. [9]Section 10G Substituted by S.R. 2005, No. 1.
  10. [10]Section 10H Rescinded by S.R. 2004, No. 5.
  11. [11]Section 65 repealed by No 16 of 1989.
  12. [12]Section 66E(8) repealed by No 24 of 1992, s16.
  13. [13]Section 68A(c) repealed by No 21 of 1990.
  14. [14]Section 94A repealed by No 15 of 1976.
  15. [15]Section 10G Substituted by S.R. 2005, No. 1.
  16. [16]Section 99 repealed by No 21 of 1990.


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