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FRCA Intends To Create Level Playing Field

The Fiji Revenue and Customs Authority has stressed people need to change their mindset in terms of leniency on tax payments. The authority stated Fiji has one of the lowest
21 Oct 2015 10:41
FRCA Intends To Create Level Playing Field

The Fiji Revenue and Customs Authority has stressed people need to change their mindset in terms of leniency on tax payments.

The authority stated Fiji has one of the lowest tax rates in the world.

Yet FRCA said they continue to hear public comments made by representatives of various stakeholders and accounting firms requesting FRCA to allow taxpayers excessive time to pay their taxes or be lenient on tax defrauders.

FRCA said the greatest non-compliance was coming from certain businesses.

Chief executive, Jitoko Tikolevu, said: “Recently we revealed the results of investigations on supermarkets and cash based businesses incorrectly declaring vatable sale of goods as zero rated sales and over-claiming expenditures.

“We have now uncovered some businesses failing to declare millions of dollars sitting in bank accounts.

“We have also found a number of big accounting firms on behalf of their clients claiming 100 per cent tax deductions for FNPF contributions when the law clearly allows only 50 per cent tax deduction.”

 

Investigations

Mr Tikolevu said many businesses that import goods are either under-declaring the value of their imports or incorrectly classifying goods to cheat on duty payment.

“Our investigations revealed that items such as alcohol spirits that is taxed on volume rather than value are incorrectly being classified as wine to defraud the government of duty taxes,” he said.

“FRCA will come down hard on businesses who think payment of taxes is a matter of choice as opposed to a statutory obligation.

“In Western countries, businessmen go to jail for simply failing to file their tax returns on time.

“When businesses borrow money from banks for investments they ensure that they make repayments on time failing which they are charged default interests.

“Payment of correct taxes on time must be part of business planning.

“It is not fair for some taxpayers to be compliant whilst others delay or defraud to reinvest that tax money in their businesses to grow ahead of compliant taxpayers.”

It is FRCA’s every intention to create a level playing field for all Fijian businesses.

“FRCA is urging all taxpayers that have not been paying correct taxes on time to change their attitudes towards payment of taxes,” Mr Tikolevu said.

“The taxpayers mindset must change to voluntary compliance before FRCA takes harsher actions against tax and duty defrauders.”

 

 




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