SUNBIZ

Tax Treaty Signed

The Fiji Revenue & Customs Authority (FRCA) has taken a step forward to implement tax avoidance strategies that exploit gaps and mismatches in tax rules. Fiji signed the Multilateral Convention
23 Jun 2017 16:56
Tax Treaty Signed
FRCA Board chairman Ajith Kodagoda

The Fiji Revenue & Customs Authority (FRCA) has taken a step forward to implement tax avoidance strategies that exploit gaps and mismatches in tax rules.

Fiji signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), also known as the Multilateral Instrument (MLI) in Paris with 67 other countries earlier this month.

FRCA Board chairman, Ajith Kodagoda represented the country at the signing ceremony.

FRCA will take the lead role in implementing the MLI strategies.

Fiji has also signed the mandatory binding arbitration which gives certainty to taxpayers that treaty-related disputes will be resolved within a specified timeframe.

FRCA Chief Executive Officer, Visvanath Das said: “FRCA as the arm of the Fijian Government is happy to be on board with 67 other countries in implementing the Multilateral Instrument.

“We already have double taxation agreements with a few countries. The MLI will further enable us to establish methods for eliminating double taxation.

“The Authority has been working closely with Organisation for Economic Co-operation and Development (OECD) and we look forward for further guidance to ensure we implement the mandatory MLI provisions,” he said.

Fiji is the only Pacific Islands Tax Administration Association (PITAA) member that has signed the MLI.

Through the Memorandum of Understanding (MOU) that was signed between FRCA and PITAA recently, member countries can seek assistance from the Authority and venture into the Multilateral Convention.

Feedback:  monica.aguilar@fijisun.com.fj

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