Mining Giants in PNG Not Paying Dividend Withholding Tax for a Decade :IRC

​The Internal Revenue Commission (IRC) of Papua New Guinea has flagged a troubling issue among the country's major mining companies. A comprehensive review spanning 2013 to 2023 uncovered that none of the five leading operational mines paid any Dividend Withholding Tax (DWT) during this period.

This revelation comes despite a dramatic increase in mineral export receipts, which soared by over 20%, from K9,071.2 million in 2013 to K44,216.6 million in 2022, according to the Bank of Papua New Guinea's Quarterly Economic Bulletin Reports. Despite this substantial growth, shareholders have not received any dividends from these mining companies.

The DWT, set at 15% on dividends distributed to shareholders, is a key metric of corporate profitability and investor returns. Commissioner General Sam Koim expressed grave concerns over this situation, stating, "Are these companies truly profitable? How can investors derive returns if dividends are non-existent? It defies logic that mines continue to operate while failing to compensate shareholders for their investments over the past decade. Or if they are paying their shareholders, how are they paying them, because it's not paid as a dividend?"

This finding raises serious questions about the financial health and transparency of these mining companies. The absence of DWT payments suggests either insufficient profits to distribute dividends or potential tax avoidance strategies, thereby depriving the government and shareholders of essential revenue.

The IRC has initiated audits on several mining companies to ensure compliance with the country's tax laws.

Also read

• Papua New Guinea Attorney General Slams Senator Hanson’s NRL Funding Critique
• Hanson Decries $600 Million NRL Funding To PNG NRL Team As Burden On Australian Taxpayers
• Impossible To Manage Migration To Port Moresby: Parkop Calls For Upgrading Other Centers
• PNG PM Marape Assigns Dual Roles To Belden Namah In Cabinet Overhaul