The Internal Revenue Commission (IRC) firmly opposes the recent push by the International Monetary Fund (IMF) to establish an “Oversight Board” to supervise the IRC’s administration and enforcement of tax laws.
This proposal, reported on (10/03/2025), is deeply concerning and threatens the integrity and independence of the IRC.
IRC Commissioner General Mr. Sam Koim stated that his objection to this proposal is not rooted in self-preservation or personal interest.
“This is not about me or my position. The IRC is a statutory institution, larger than any individual who temporarily occupies the office. Accountability is a cornerstone of good governance, and as a staunch advocate for transparency, I welcome robust accountability mechanisms.”
“However, the IRC already has both internal and external accountability frameworks in place. Therefore, any intervention must be justified with concrete evidence and a sound policy rationale,” Mr. Koim said.
Mr. Koim said despite several discussions with proponents of this proposal, no cogent justification has been presented to date.
“We are yet to see a convincing argument as to why an additional oversight board is necessary or what policy deficit it intends to address.”
“Where is the evidence that our current mechanisms are failing or that there has been a breakdown in performance or accountability? Without clear answers, it is difficult to comprehend why such a drastic structural intervention is being pursued.”
“Papua New Guinea has unique governance challenges that demand careful consideration when designing accountability mechanisms.”
“The IRC’s journey from a deemed department to a statutory authority established under the Internal Revenue Commission Act 2014 is a reflection of progress and modernization,” he said.
He added that the IRC, much like the Public Prosecutor and Auditor General, has adopted an autonomous revenue administration model that exists in many countries and is entrusted with monocratic authority to enforce tax laws independently and without fear or favour.
“Placing a structural oversight board, comprised of board members from the private sector, over this function would undermine the very essence of that independence.”
“What is even more concerning is the timing of this push. It coincides with ongoing audits of several major multinational corporations that have never been scrutinized by the tax office. This coincidence raises serious questions about the IMF Country Director’s intentions and the motives behind this proposal.”
“While we acknowledge and appreciate the budget support from the IMF and the development partners, we are troubled by the apparent use of financial leverage to force through structural changes that lack rationale.”
Mr. Koim said the IMF’s role as both a lender and an increasingly influential financial advisor gives it significant sway over our fiscal landscape.
“However, not all reforms are inherently good or necessary, and we must be vigilant in scrutinizing proposals that threaten the effective functioning of our institutions given our unique challenges.
The IRC has undergone a remarkable transformation over the past few years, moving from a passive tax collector to a modern, robust, and resilient organization.
Our revenue performance has surged from K8 billion in 2020 to nearly K17 billion last year—an impressive testament to our commitment to delivering on our core mandate.
We have built an accountable, resilient, and agile institution that consistently achieves outstanding results,” Mr. Koim said.
He added that attempting to change an institution that is already delivering at an optimal level makes no sense.
“One must question the motives behind the IMF Director’s insistence on introducing this oversight mechanism.”
“There has been no demonstration that the current structure is failing or that the proposed changes would lead to better outcomes.”
“It appears to be an attempt to “fix” what is already working exceptionally well, raising doubts about the true intent behind this push.”
“We call on the IMF and its representatives to respect the sovereignty of our institutions and to engage in transparent and evidence-based discussions about any proposed reforms.”
Mr. Koim said the Prime Minister has given clear instructions that this proposal is not going to be supported but it seems they are adamant in pushing to have this tied to the loan conditions.
“The integrity and independence of the IRC must not be compromised hence this call.”