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Companies who get contracts from the government must have Tax Identification Numbers (TIN) from the Internal Revenue Commission.
This will be compulsory before any payment is made from district and provincial treasuries through the Integrated Financial Management System (IFMS).
IRC Commissioner General Sam Koim says it has administratively burdensome for the organisation to collect GST and allows a big non compliance gap.
He said IRC is taking a number of measured steps in closing that gap, starting with those who receive business from the government.
Minister for Finance Sir John Pundari today launched what is dubbed as “GST Section 65A Notice” to be configured in the Integrated Financial Management System (IFMS) to facilitate the direct transfer of GST components directly to IRC on account of suppliers.