OECD-IGF TECHNICAL WORKSHOP ON TAX TRANSPARENCY AND BEPS

The Organization for Economic Co-operation and Development (OECD) and the Intergovernmental Forum on Mining, Minerals, Metals, and Sustainable Development (IGF) conducted a specialized technical workshop for the Internal Revenue Commission (IRC) of Papua New Guinea (PNG).

The workshop is part of the Deep Dive Programme to Address Base Erosion and Profit Shifting (BEPS) in the Extractive Industry.
“The session, held on Wednesday, 26 March 2025, included participation from key stakeholders, including the Department of Treasury and the Mineral Resources Authority (MRA).

The workshop aimed to strengthen tax administration enforcement and institutional capacity, with a targeted focus on:

Capital Gains Tax (CGT) Implementation

🔳 With PNG’s introduction of a CGT regime under the Income Tax Act 2025, specifically targeting the extractive sector, the session provided technical guidance on administering the new legislation.

🔳 Experts from IGF led in-depth discussions on valuation methodologies for mining licenses, covering each phase of the project lifecycle—from exploration to mine development.

🔳 Participants included compliance, legal, and policy teams from the IRC, Treasury, and MRA. Mitigating BEPS Risks in Financial Transactions

🔳 Given the heightened risks of profit shifting through related party financing, the workshop delivered practical training on identifying, assessing, and pricing such arrangements in alignment with the OECD Transfer Pricing Guidelines.

This initiative is a key component of PNG’s BEPS in Mining Program, which seeks to enhance the government’s capacity to address tax avoidance risks while improving compliance and revenue collection from extractive industries.

In addition to the workshop, Tax Inspectors Without Borders (TIWB) experts commenced collaborative case reviews with IRC’s audit and investigations teams.

These engagements covered extractive sector cases, forestry, and strategic work planning to ensure sustained implementation of best practices.

This program will run for 18 months and underscores PNG’s commitment to transparency, fair taxation, and sustainable development in its resource sector.