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Gaming Machine (Budget Provisions 1997) Act 1996

PAPUA NEW GUINEA

Gaming Machine (Budget Provisions 1997) Act 1996

No. 32 of 1996.
Certified on: 8.11.96

ARRANGEMENT OF SECTIONS.

1. Definitions (Amendment of Section 65).

"payouts".

2. Amount returnable in prizes (Amendment of Section 66).
3. New-Section 67A.

"67A. TURNOVER TAX."

4. New Section 67B.

"67B. POWERS OF COMMISSIONER GENERAL IN RELATION TO TURNOVER TAX."

5. New Section 67C.

"67C. OFFENCES IN RELATION TO TURNOVER TAX."

AN ACT

entitled

Gaming Machine (Budget Provision 1997) Act 1996,

Being an Act to amend the Gaming Machine Act 1993,

MADE by the National Parliament to be deemed to have come into operation on 1 October 1996.

1. DEFINITIONS (AMENDMENT OF SECTION 65).

Section 65 of the Principal Act is amended by repealing the definition of the term "payouts" and replacing it with the following:-

'''payouts' means the total of cancelled credit payment, jackpot payments and the amount of turnover tax paid or due and payable under Section 67A;".

2. AMOUNT RETURNABLE IN PRIZES (AMENDMENT OF SECTION 66).

Section 66 of the Principal Act is amended by repealing the amount "85%" and replacing it with the following:-

"70%".

3. NEW SECTION 67A.

The Principal Act is amended by inserting after Section 67 the following new section:-

"67A. TURNOVER TAX.
(1) In this Part -

• 'Commissioner General' means the Commissioner General of Internal Revenue appointed under Section 6 of the Income Tax Act 1959;
• 'operator' means the holder of an operator's licence.

"(2) A turnover tax of 7% is payable by an operator on the amount of the turnover.
"(3) The turnover tax imposed by Subsection (2) is a debt due and payable by an operator to the State and shall, in respect of the turnover, of each week, be paid by that operator to the Commissioner General on or before the first Friday after the end of that week or within such further time as the Commissioner General allows.
"(4) An operator shall send to the Commissioner General with every amount of turnover tax payable by him a return, in such form as the Commissioner General requires, setting out particulars of the turnover for the period to which the payment relates.
"(5) Where the Commissioner General is of the opinion that the amount of turnover tax payable by an operator in respect of any week has been understated or cannot be correctly determined, the Commissioner General may make an assessment of the amount that he considers is the correct amount of turnover tax for that week and the amount so assessed shall, unless the contrary is proved, be deemed to be the amount of turnover tax payable by the operator in respect of that week.
"(6) The Commissioner General shall, within seven days immediately after making an assessment under this section, send to the operator by post, a notice of the assessment, but this section shall not be construed as deferring the date on which any amount of turnover tax becomes due and payable.
"(7) Part V of the Income Tax Act 1959 shall, with the necessary modifications, apply to and in relation to an assessment of turnover tax under this section as if that assessment was an assessment of income tax under that Act by the Commissioner General.
"(8) Where any amount of turnover tax remains unpaid after the expiration of the time provided for payment under this section, additional tax of 20% of the amount unpaid shall be due and payable to the State.
"(9) An amount of additional tax under this section shall be deemed to be turnover tax due and payable by the operator in respect of the week to which the unpaid tax relates.
"(10) In addition to any additional tax imposed by Subsection (8), where any turnover tax remains unpaid after the time provided for its payment under this Section, further additional turnover tax is due and payable at the rate of 20% per annum on the amount unpaid, computed from such date as the Commissioner General determines, not being a date before the date on which the turnover tax was originally due and payable.
"(11) The Commissioner General may, in any case, for reasons that he thinks sufficient, remit the further additional turnover tax or any part of that turnover tax.".

4. NEW SECTION 67B

The Principal Act is amended by inserting after Section 67A the following new section:-

"67B. POWERS OF COMMISSIONER GENERAL IN RELATION TO TURNOVER TAX
(1) The Commissioner General or a person authorized by him for the purpose shall at all times have full and free access to all buildings, places, books, documents, other papers and electronic storage devices for the purpose of obtaining information relating to the determination of the gross turnover of and the liability to pay turnover tax under this section by an operator and may make extracts from or copies of any such books, papers or electronically stored information.
"(2) The Commissioner General may -

• (a) by written notice, require an operator to furnish him with such information as he may require; and
• (b) to attend and give evidence before him (or before a person authorised by him for the purpose),

concerning the operation of the gaming machines and the amount of gross turnover of those machines and may require him to produce books, documents and other papers in his custody, or under his control relating to those matters.
"(3) The Commissioner General may require the information or evidence referred to in Subsection (2)(a) to be given under oath, orally or in writing and for that purpose he, or the person authorised by him, may administer an oath.
"(4) An operator required to attend and give evidence under this subsection shall be paid such reasonable expenses as the Commissioner General determines.".

5. NEW SECTION 67C.

The Principal Act is amended by inserting after Section 67B the following new section:-

"67C. OFFENCES IN RELATION TO TURNOVER TAX.
(1) An operator who

• (a) fails or neglects to lodge; or
• (b) makes a false or misleading statement in,

a return to be lodged with the Commissioner General under Section 67A is guilty of an offence.
Penalty: A fine not less than K1,000 and not exceeding K10,000
Default Penalty: A fine not exceeding K1,000.
"(2) In addition to any penalty imposed by the court under Subsection (1) in respect of a false or misleading statement in a return, the court may order the person convicted to pay to the Commissioner General a sum not double the amount of turnover tax that would have been avoided if the statement in the return had been accepted as correct.
"(3) On the conviction of a person under Subsection (1), the court may order him to furnish the return or a corrected return as the case may be, within the time specified in the order and a person who does not comply with such an order is guilty of an offence.
Penalty: A fine not less than K1,000 and not exceeding K10,000.
"(4) An operator who fails

• (a) to keep complete and proper books in respect of his carrying on the business of operator; or
• (b) to enter and keep entered in the books specified in Paragraph (a) a full and accurate record of all gaming machine transactions relating to the machines controlled by him; or
• (c) to retain the books specified in Paragraph (a) for such period as is prescribed; or
• (d) to produce the books specified in Paragraph (a) when required to do so by the Commissioner or a person authorised by him for the purpose and to allow the books and all entries in the books to be inspected,

is guilty of an offence.

• Penalty: A fine not exceeding K2,000.

"(5) A person, who hinders or obstructs the Commissioner General or a person authorised by the Commissioner General to this Section, or a member of the Police Force in the carrying out, exercise or performance of any of his functions, duties and powers under this section, is guilty of an offence.
Penalty: A fine not exceeding K2,000.".

I hereby certify that the above is a fair print of the Gaming Machine (Budget Provisions 1997) Act 1996 which has been made by the National Parliament.

Clerk of the National Parliament.

I hereby certify that the Gaining Machine (Budget Provisions 1997) Act 1996 was made by the National Parliament on 9 October 1996.

Speaker of the National Parliament