A recent joint operation between the Fiji Revenue and Customs Service (FRCS), the Fiji Police Force, and the Maritime Safety Authority of Fiji (MSAF) has successfully detected, disrupted, and detained multiple illegal activities. This collaborative effort underscores the importance of resource sharing and information exchange in achieving enforcement objectives.

The operation, conducted at the Mua-i-Walu port premises and nearby carrier stands, uncovered alarming evidence of high-value dutiable goods concealed in used water bottles. This sophisticated smuggling technique highlights the evolving methods employed by perpetrators and certain shop owners to evade customs regulations. Additionally, undeclared cigarettes were discovered on a fishing vessel, further exposing potential breaches of trade legislation involving shop owners and maritime operators.

The findings from these coordinated raids emphasize the critical need to safeguard Fiji’s supply chains from illegal activities. The FRCS and its partners remain steadfast in their commitment to disrupting these networks and ensuring compliance with the law.

FRCS CEO, Mr. Udit Singh stated that the results of the joint operation highlight the types of illicit activities designed to evade law enforcement. “We will continue to work collaboratively with our partners to ensure those engaging in illegal trade are held accountable under the law,” Mr. Singh said.

As we approach the festive season, FRCS is urging members of the public to remain vigilant and report any suspicious activities. Businesses are reminded to operate within the confines of the law, ensuring that all traded goods meet the legal requirements. Together, we can protect Fiji’s economy and ensure a safe and secure trading environment for all.  

The Fiji Revenue and Customs Service (FRCS) has reported a net revenue collection totaling $1.169b at the end of the first four months of the 2024-2025 fiscal year, exceeding its forecast by $105.0m (9.9%) and reflecting an increase of $178.0m (18.0%) compared to the same period last year.

The positive outcomes stem from the consistent monthly performances. In August, collections stood at $291.9m, exceeding the forecast by $53.5m (22.5%). The strong performance set a positive tone for the months that followed. September continued this trend with a net revenue of $290.9m, surpassing the monthly forecast by $8.6m (3.1%). In October, revenue collection surged to $300.0m, representing a significant positive variance of $24.0m (8.7%) against the forecast. Additionally, in November, net revenue collection was $286.5 million, surpassing forecasts by $18.9m (7.1%). All major tax types including the Value Added Tax (VAT), Income Tax and Trade & Customs taxes have performed extremely well.

FRCS CEO, Mr. Udit Singh, credited the positive cumulative collections to the robust and strong performances across the key sectors of the economy as well FRCS compliance initiatives.

The strong performance observed over the past four months signals widespread commercial activity across all sectors. The growth in the services sector, particularly driven by increased activity in tourism, has played a significant role. Increased income tax payments resulting from improved business turnover and profitability, along with a substantial increase in VAT collections spurred by rising consumer demand, have also been pivotal, said Mr. Singh. Mr. Singh added that the ongoing strong revenue performance is also a result of improved compliance activities such as the VAT Compliance Drive and the positive contributions of the intense awareness and education programs along with the set-up of the new Post Assessment Verification Unit.

Looking ahead, Mr. Singh is optimistic that revenue projections for December 2024 and the other months will continue a similar trajectory.

The Ministry of Finance, in coordination with the Fiji Revenue and Customs Service (FRCS) has established an FRCS-led Tax Compliance Taskforce to prevent, detect and address tax evasion and avoidance as well as further strengthen tax compliance in Fiji.

Tax crimes are serious as they can negatively impact on revenue collection, undermine trust in the legal and financial system, and are also often linked to other serious crimes.

Chaired by the FRCS Board Member and a renowned and proficient Chartered Accountant, Mr. Nitin Gandhi, the Tax Compliance Taskforce aims to further strengthen tax compliance, prevent tax evasion, and enhance revenue collection through rigorous enforcement and collaborative efforts with relevant agencies and businesses

More specifically, the Taskforce will:

• Review and recommend improvements to existing legislation and processes.
• Review current processes and re-develop frameworks for investigating, enforcing and prosecuting undisclosed income and financial non-compliance.
• Collaborate with key agencies to address tax evasion and financial crimes.
• Utilize evidence-based information from various sources to support investigations
• Implement measures to protect revenue and ensure compliance with legal standards.
• Maintain strict data privacy and security protocols.

In addition to Mr. Gandhi, the other members of the Taskforce include former CEO of Fiji Revenue and Customs Authority (now FRCS), Mr. Jitoko Tikolevu, former acting Commissioner of Police, Mr. Rusiate Tudravu, anti-corruption and governance expert Mr. Avaneesh Anand Raman and risk and financial management expert, Mr. Pramesh Sharma.

The Taskforce has been appointed for an initial period of 12 months.

According to the Ministry of Finance, the Taskforce will take appropriate measures to ensure that the taxes owed are accurately collected through FRCS processes.

According to the FRCS CEO, Mr Udit Singh, the FRCS has all the baseline information on individual income.

More importantly, the Taskforce will operate in collaboration with, rather than supplanting, the role of the Commissioner of Tax under the FRCS Act, the Fiji Financial Intelligence Unit (FFIU), Fiji Independent Commission Against Corruption (FICAC), the Fiji Police Force, the Director of Public Prosecutions Office (DPP), and other relevant agencies,”. It will also collaborate with agencies of our international partners such as Australia and New Zealand

A framework is being developed for the Taskforce to have a defined structure and guidelines for operation and in the coming months they will also have a memorandum of understanding with other enforcement agencies.

As part of its strategic focus to further enhance customer service and experience, the Fiji Revenue and Customs Service (FRCS) signed a Memorandum of Agreement (MOA) with the BRED Bank (Fiji) Pte Limited this morning, paving way for real-time e-payments for tax.

The MOA, signed by the FRCS CEO, Mr. Udit Singh, and the BRED Bank CEO, Mr. Pierre Tastet, will allow FRCS and BRED Bank to develop, operate and maintain an Application Program Interface (API) as part of the Taxpayer Online Service (TPOS) for real- time e-payments for tax.

Describing this initiative as a significant milestone for FRCS, Mr. Singh stated that the interface will allow BRED Bank customers to use their respective online banking portal to make payments to FRCS which will be validated in real-time against the specific tax types and accounts payable to FRCS.

According to Mr. Singh, the real-time payment mechanism is another addition to the e-services provided to FRCS customers.

“As taxpayers in Fiji use digital technology in more and more areas of their work, the introduction of the real-time e-payment service will be very beneficial to them. Business and individuals alike will benefit in many ways including making and having payments cleared faster and at a lower cost than using the traditional payment method and being able to manage day-to-day operations better with improved cash flow,” he said.

“FRCS is committed to further enhance its business processes not only focused on improving the customer experience but also reducing cost of doing business and closing tax gaps.”

FRCS is also working on having similar arrangements with the other banks in Fiji as well.

Mr. Singh thanked the team from BRED Bank for partnering with FRCS in this initiative and encouraged people to utilise the real-time e-payment service.

With the implementation of the new interface, taxpayers will be able to acquire from TPOS information on taxes that are due, amount payable as well as the penalties for overdue taxes. They can then log into their BRED Bank online banking portal and make their tax payments from anywhere and anytime. These payments will be reflected in real-time in the FRCS system and in the respective taxpayer’s ledger.

BRED Bank CEO Mr. Pierre Tastet said “Today, governments and businesses around the globe are moving away from legacy payment systems towards new platforms that can deliver payment services in a fast, safe and convenient manner.  We are honour ed and thank FRCS in choosing BRED Bank to implement this real-time e-payment system in Fiji.”

“I encourage our BRED customers to fully utilize our digital platforms; BRED Fiji Connect for individual customers and BRED Business Connect for Corporate customers to experience speed, convenience and security in today’s fast paced world.” Mr. Pierre added.

In closing remarks, Mr. Pierre said “The financial landscape of transferring money and making payments has significantly evolved over the years and such investments do not come easy and cheap. We can all be proud of the substantial progress that has been made by both stakeholders in achieving this strategic objective.”

Our Ba team were pleased to hold an information session on tax for Heads of Departments of Government Ministries and other agencies in Ba. The information sessions covered a wide range of topics including a brief on FRCS, 2024/2025 National Budget Revenue Policies and its implications, overview of the major tax types administered by FRCS, tax incentives and duty concessions and requirements for travel release for TSLS students.

The participants attending the session were officers from the Fiji National Provident Fund (FNPF), the Fiji Police Force, the Bureau of Statistics, Ministry of Employment, Productivity and Workplace Relations, Ministry of Agriculture and Waterways, Ministry of Rural and Maritime Development and Disaster Management, Ministry of Fisheries, Ministry of Forestry, Ministry of Education, Ministry of Justice, Ministry of Women, Children and Social protection and the Veterinary office.

This information session was extremely important as it provided an excellent opportunity for the participants to enhance their knowledge on topics such as the tax incentives and duty concessions available since Ba falls within the Tax-Free Region in Fiji. The knowledge gained by the officers will allow them to disseminate accurate information to their respective clients and stakeholders.

Each topic was presented comprehensively, and the participants left the session equipped with a deeper understanding of Fiji’s tax landscape and skills to navigate tax compliance effectively.

The Australian Border Force (ABF) donated a wide range of equipment including the Narcotic Identification Kits (NIK) to be used at Fiji’s border across aviation, marina, ports, air cargo and mail to enhance detection of illicit substances.  The equipment was officially handed over by the ABF Commander International, Ms. Claire Rees to our operations and inspection team at the FRCS office at Nadi Airport.  The donated equipment will significantly enhance FRCS’s capability to test and detect illicit substances at the borders or during operational exercises. The Narcotic Identification Kits will allow us to test for illicit substances in real time while the other basic tools and equipment can be used to inspect goods at Fiji’s borders. FRCS greatly appreciates the outstanding support and commitment provided by ABF in further enhancing Fiji’s border management and security. FRCS and ABF have a long-standing relationship, and we value the strong partnership that we have established with ABF and thank the Australian Government and ABF for the support towards FRCS in the form of customs modernisation, technical assistance and capacity building that has helped FRCS improve its core roles including border protection, security, trade facilitation, revenue and compliance.

The World Customs Organisation (WCO) in cooperation with the Japan International Cooperation Agency (JICA) has organised the first Working Group Activity (WG1) of the Master Trainer Programme (MTP) on Risk Management (RM) and Post Clearance Audit (PCA) which is being held at the Fiji Revenue and Customs Service (FRCS) Headquarters in Suva. MTP is the flagship program of the WCO/JICA Joint Project and is aimed at working with customs administrations to build more sustainable training capacity on key customs topicsthrough the development of a pool of highly experienced trainers, tailor-made training materials and training programme/course curricula.

30 customs officers from Fiji, Palau, Papua New Guinea (PNG), Samoa, Solomon Islands, Timor Leste, Tonga and Vanuatu are attending the MTP Working Group Activity 1. Expressing gratitude for the assistance from WCO and JICA in enhancing capacity development of customs administrations in the Pacific, FRCS CEO, Mr. Udit Singh stated that the MTP is important for Fiji as well as other Pacific Island countries as it will help develop the skills and capacity of customs professionals which can help to enhance revenue collection, support economic development, build regional cooperation and improve border security.

FRCS Director Border and Customs, Ms. Shelini Kumar stated that MTP is not just another training initiative as it represents a critical step forward in enhancing our expertise and broadening our capacity to manage the increasing complexities of customs and border management. “Our collective goal is to build a resilient customs service that can meet the demands of a rapidly changing global landscape,” Ms. Kumar said. JICA has been implementing MTP with WCO since 2016. In the Pacific, the first MTP which was on the Customs Valuation and the Harmonised System (HS) classification was implemented from 2021 to June 2024 targeting 6 countries and resulting in 21 Master Trainers.

JICA Fiji Office Resident Representative, Satoshi Wakasugi is confident that the JICA/WCO Joint Project will contribute to enhance trade facilitation and revenue collection for targeted countries in the Pacific Islands. “This MTP is in line with the strengthen capacity building for financial management, that is the partnership strategy among the governments of Pacific Islands and Japan and was mentioned in the Joint Action Plan of the 10th Pacific Islands Leaders meeting (PALM 10) in Tokyo which was adopted in July 2024.

According to the Deputy Manager WCO/JICA Joint Project, Mr. Masaya Deguchi, MTP was not limited to the Pacific. “We have had similar programs in Africa and are conducting one in Central Asia and Caucasus. Through these programs, we have produced over 210 Master Trainers and they have gone ahead and conducted trainings for a staggering 49,000 individuals from government officials to private sector professionals between 2018 to 2023 in Africa, ”Mr. Deguchi said.

“As we embark on this journey together, I am confident that the knowledge and skills you gain will not only benefit your respective countries but also strengthen our collective efforts in the region,” he said.