The Fiji Revenue and Customs Authority has revealed that it is owed $5 million through breach of taxation laws and regulations.

Discrepancies have been noted in four cases whereby incorrect information on VAT returns have been filed.

This is in addition to the earlier announcement by FRCA this week where it had said some major supermarkets are being investigated for using additional cash registers for tempering sales data.

FRCA general manager Taxation, Visvanath Das, confirmed that also under investigation now were three construction companies and one small grocery shop.

“Investigations over supermarkets are currently taking place. We have the information on hand now and action will be taken,” he said.

“I think it is high time we want to highlight that these are the issues and FRCA knows about it and we want full compliance.

“If people do not comply with the law, then we will invoke heavy penalties and fines.”

Warning

FRCA chief executive, Jitoko Tikolevu, has warned tax payers if information is presented to FRCA with the intention to forge Government, there will be penalties.

“I wish to warn taxpayers that there is so much done by Government today to help businesses grow and make profit and it’s really a partnership,” he said.

He added they wanted tax payers to respect the laws as far as taxation was concern.

“We are concerned that whilst we are putting every aspect to facilitate businesses, I think it is only fair that all tax payers comply with giving us in return by paying the taxes fairly,” he said.

Request

Mr Tikolevu explained: “Our intention is that we really want to trust all out tax payers, we want voluntary compliance, we want self assessment and they asses their taxes.

“FRCA has gone on to simplifying the tax codes. All this is done in an effort for tax payer voluntary compliance. Whilst we do these tax payers continue to be dishonest.”

He stressed it was high time the tax payers seriously took note of FRCA’s future strategies because they really wanted to work in an environment of self assessment and voluntary compliance.

FRCA raises non-compliance issues:

• Falsification of VAT returns
• Double claiming of invoice
• Zero-rated of sales on food items
• Understating VAT sales
• Two sets of books
• VAT refunds
• Overstating exports
• Undeclared VAT on employee fringe benefits
• Undeclared VAT on indemnity payments
• Income Tax claims
• VAT returns

Feedback: rachael.nath@fijisun.com.fj