A joint search and rummaging operation conducted on a foreign-flagged sailing vessel in Savusavu led to the detection and seizure of undeclared alcohol with a total duty liability and compounding penalty amounting to more than FJ $6,500.

The collaborative vessel monitoring assessment was carried out through the combined intelligence efforts of the Fiji Revenue and Customs Service (FRCS) and the Republic of Fiji Navy (RFN).

A joint boarding team comprising of representatives from FRCS, RFN, Fiji Dog Detector Unit (FDDU), Fiji Police Force, Fiji Immigration Department, Ministry of Fisheries, Biosecurity Authority of Fiji (BAF), Maritime Safety Authority of Fiji (MSAF) and Ministry of Health and Medical Services (MOH) searched the vessel and confiscated 234 bottles of 200ml rum, three bottles of 750ml rum and one bottle of 1 litre liquor.

The seized goods were handed over to FRCS officers for detention and the vessel’s master was apprehended and charged under Section 137 (a) of the Customs Act 1986 for committing an offence.

FRCS CEO, Mr. Udit Singh commended the officers for the successful interception and for carrying out their duties diligently in ensuring that our borders are protected from illegal activities.

“Alcohol is subject to excise duty on import to Fiji and smuggling deprives the country of revenue that would otherwise be used to fund vital public services such as schools, hospitals and infrastructure,” Mr. Singh said.

“We wish to remind operators of foreign vessels to understand and comply with the entry requirements of Fiji. FRCS will have zero tolerance for illegal activities detected at the Fijian borders.”

The successful joint operation marked the culmination of a two-week Seaport Border Management Vessel Search Training, the third iteration of such training. The training,

conducted in Savusavu, encompassed a two-pronged approach over two weeks. A group of interagency facilitators engaged in training 35 participants from maritime border security agencies, and a second group engaged in conducting community awareness to 15 villages, supported by the Ministry of i-Taukei Affairs.

The training is supported by the Government of Japan and the United Nations Development Program (UNDP) in partnership with FRCS and other agencies. The success of the vessel search and seizure underscores the importance of leveraging the strengths of partner agencies to enhance detection, deterrence, and response to maritime security threats.

The continued support from development and regional partners in enhancing the capacity and capability of Fiji’s maritime border security agencies reinforces national efforts to strengthen maritime security. These efforts, led by the Ministry of Home Affairs and Immigration will include formalising the endorsement of the Maritime Border Cooperation Framework.

The Framework will cover aspects related to strengthening coordination and maritime domain intelligence efforts at the Maritime Essential Services Centre (MESC). The MESC, scheduled for handover to the RFN in the first quarter of 2025, will include seconded officers from maritime border security agencies operating in a joint environment.

Additionally, the framework also aims to enhance cooperation at sea as part of the efforts to strengthen Fiji’s maritime borders,

The Fiji Revenue and Customs Service (FRCS) has achieved a historic milestone by surpassing $3 billion in revenue collections for the fiscal year, 2023-2024. With a final net revenue of $3.1 billion, FRCS has exceeded its forecast by $68 million, representing a 2.3% increase. This marks a remarkable growth of $819 million, or 36%, compared to the previous fiscal year of 2022-2023.

This is the first time FRCS has reached the $3 billion mark. Prior to this achievement, the highest revenue collections were $2.83 billion in the 2017-2018 fiscal year and $2.81 billion in the 2018-2019 fiscal year, the two years before the pandemic.

The most significant revenue growth has come from Value Added Tax (VAT), which now contributes 44% to the total revenue. The increase in VAT collections can be attributed to the growth in the economic activity and the key sectors, higher import volumes, the change in rate from 9% to 15%, and the compliance initiatives by FRCS.

Income taxes including the Corporate Tax and Pay As You Earn and trade taxes such as fiscal duty and domestic excise taxes, all contributed significantly towards the total collection.

In light of this milestone collection, Chief Executive Officer Mr. Udit Singh shared the following remarks, “Surpassing the $3 billion revenue mark is a significant achievement for the Fiji Revenue and Customs Service and a testament to the resilience and growth of key economic sectors in Fiji. Our strong performance is a reflection of the robust recovery and expansion in sectors such as manufacturing, wholesale & retail trade, and accommodation & food services.”

“The impressive increase in VAT collections, supported by the rate adjustment and vibrant economic activity, highlights the success of our efforts in enhancing compliance and ensuring the accurate collection of taxes. We are also seeing a robust performance in income taxes, with both corporate and PAYE collections reflecting a strong economic rebound.”

“Our ongoing commitment to tightening compliance measures and supporting taxpayers has been instrumental in achieving this milestone. We have engaged platforms such as the VAT Monitoring System and other profiling tools to proactively identify non-compliance and address them. We remain dedicated to fostering a transparent and efficient tax system that supports Fiji’s economic growth and development.

“I would also like to express our gratitude to the government for its unwavering support, as well as to our partners, including the Fiji Police Force, Australian Tax Office, Australian Border Force, and New Zealand Police and New Zealand Customs, for their ongoing collaboration. Most importantly, I extend our sincere thanks to all taxpayers who have diligently filed and paid their taxes on time. Last but not least our gratitude goes to our staff across the country for continuing to raise the bar and improve performance. We encourage all taxpayers to contact FRCS for assistance with their tax matters and to ensure continued compliance.”

Our CEO, Mr. Udit Singh, attended the 26th Oceania Customs Organisation (OCO) Annual Conference in Rarotonga, Cook Islands, from 29th to 31st July 2024.

The conference held under the theme “Strengthening Partnerships for Dynamic Solutions and a Future-ready Blue Pacific” fostered dialogue, shared valuable insights, and reinforced the commitment of member countries to work collaboratively towards dynamic solutions and a resilient Blue Pacific.

The outcomes of the conference will guide future initiatives and efforts in Customs reform, modernization, trade facilitation, revenue, compliance, enforcement, border security and regional security.

The conference concluded with a commitment to continue strengthening partnerships and enhancing cooperation among OCO members and partners to ensure a future-ready Customs administration capable of addressing the dynamic challenges of the Pacific region.

The Fiji Revenue and Customs Service (FRCS) will continue to benefit from the technical assistance provided by the Australian Tax Office (ATO) with the extension of ATO’s capacity-building programme for FRCS for another year.

 FRCS CEO, Mr. Udit Singh expressed his appreciation for the outstanding support and commitment provided by the Australian Government and ATO in further enhancing Fiji’s Tax Administration and achieving its strategic objectives.

“FRCS values the strong partnership we have established with ATO through the ATO Technical Assistance Program for FRCS, and we are grateful for the capacity-building efforts we have received from the ATO over the years,” Mr. Singh said.

“The partnership aims to build a strong and effective working relationship between ATO and FRCS to support FRCS in its work to design and implement a strong, transparent and effective tax regime in Fiji.”

“FRCS will continue its engagement and collaboration to ensure we keep on learning from ATO to deliver world-class services to the public in Fiji,” he further reiterated.

ATO’s Director of International Relations, Capacity Building and Transparency, Ms. Gabrielle Jackson, stated that ATO was immensely pleased to see the extension of the program, which reaffirmed the success of its capacity-building progress and dedication to support FRCS in achieving its strategic objectives.

“This extension not only underscores our mutual trust and respect but also sets the stage for continued success in capacity building and technical assistance,” Ms. Jackson said.

Recently ATO’s Assistant Director, International Relations, Capacity Building and Transparency, Ms. Isabelle Hu, National Director, Investigations Criminal Law Program, Fraud and Criminal Behaviours Mr. Justin Clarke and Director, Exchange of Information, International Support and Program, Ms. Andi Watson visited FRCS for a technical mission. This mission aimed at establishing robust mechanisms for the set-up of the exchange of information on request and spontaneous exchange of information and support capacity building to strengthen FRCS’s capabilities in identifying, investigating and combating tax crime.

According to Ms. Isabelle Hu, by sharing knowledge and best practices, the ATO aims to support FRCS in meeting the international standard and strengthen FRCS’s capability to combat tax evasion and improve compliance.

“We would like to express our sincere appreciation for the proactive engagement and productive experience we have had during this mission. The dedication and collaboration demonstrated by the FRCS team has been exemplary. This mission has not only strengthened our professional relationship but also reaffirmed our shared commitment to achieving excellence in tax administration,” Ms. Hu stated.

During the mission, ATO also hosted an exclusive event tailored for students currently working at the ATO University Paid Internship Program and the FRCS Tertiary Entry Level Paid Program. This event aimed to provide valuable insights and network opportunities for the students to exchange ideas, experiences and best practices with peers from both countries.

“The ATO values its close and collaborative relationship with the FRCS. Our partnership is built on mutual respect, shared goals and a commitment to excellence in tax administration,” Ms. Hu said.

“As we look towards the future, our capacity-building program is committed to aligning our efforts with the FRCS’s vision for a robust and efficient tax administration. Our next upcoming work priorities will concentrate on enhancing compliance and debt collection processes, which are pivotal to ensuring the integrity and sustainability of Fiji tax systems,” she said.

The Fiji Revenue and Customs Service (FRCS) has announced the appointment of two new members to its Board of Directors, Mr. Nitin Gandhi and Mr. Jitoko Tikolevu. Mr. Gandhi and Mr. Tikolevu have been appointed in accordance with Section 4 of the FRCS Act 1998 for 3 years effective from 16th July 2024.

FRCS’s Chief Executive Officer (CEO), Mr. Udit Singh welcomed the new Directors to the FRCS Board.

“The new Board of Directors have valuable expertise and perspectives that will help provide effective strategic direction and oversight to FRCS,” Mr Singh stated.

“Their diverse talent and expertise will enhance the strength and impact of our board and our ability to achieve our strategic objectives as we work towards being a world-class revenue service delivering excellence in revenue collection, border protection, trade and travel facilitation.”

Mr. Tikolevu was the former Fiji High Commissioner to the United Kingdom (UK) from 2016 to 2023. He was also the CEO of the Fiji Revenue and Customs Authority (now Fiji Revenue and Customs Service) from 2007 to 2015 and the Deputy Board Chair of the Fiji Development Bank (FDB) and the Investment Fiji until December 2015.

He has obtained a Bachelor of Arts (BA) degree in Business Studies from the University of the South Pacific (USP) and a Masters in Taxation degree from the University of Auckland.

“I am looking forward to contributing and working together with the current FRCS Board,” Mr. Tikolevu stated.

Mr. Gandhi is a Chartered Accountant and the former managing partner of PricewaterhouseCoopers (PwC). He is also a fellow of the Australia and the New Zealand Charted Accountants, former president of the Fiji Institute of Charted Accountants, an accredited mediator, former president of the Fiji Red Cross Society and a current member of the International Federation of Red Cross (IFRC) Audit and Risk Commission in Geneva.

He has over 38 years of experience providing professional services mainly in assurance, taxation and advisory to numerous businesses in Fiji and regional countries across multiple industries including tourism, aviation, energy, manufacturing, retail, agriculture and financial services.

While accepting the appointment of FRCS Board Director, Mr. Gandhi noted the challenges facing FRCS in its reforms and administrative systems.

“There is a need to embrace globalisation and digitalisation to ensure FRCS serves its customer base in the most efficient and fairest way. Modernising tax compliance and developing systems accordingly would be key to the economic development of the country,” he stated.

The Fiji Revenue and Customs Service (FRCS) celebrated its MSME Day this morning to recognize the Micro, Small and Medium Enterprises (MSME) that have successfully completed their training in tax compliance.

Speaking at the celebration, FRCS CEO, Mr. Udit Singh stated that FRCS has trained almost 3000 representatives from a diverse group of MSMEs in tax and customs processes and approximately 75% of those who have been trained have compiled and lodged their tax returns with FRCS. MSMEs hold great potential to contribute more revenue to Fiji’s economy. 

“It is evident that despite their size, MSMEs play a pivotal role in driving Fiji’s economic growth, creating employment opportunities and alleviating poverty. MSMEs hold great potential to transform economies and promote equitable economic growth if given adequate support. While we recognise the immense contribution made by the MSMEs towards Fiji’s economic growth and development, it is also important for us to acknowledge the challenges faced by the micro, small and medium enterprises,” Mr. Singh said.

There are approximately 116,800 MSMEs registered with FRCS, out of which 22,800 are paying taxes amounting to more than $59 million annually.

Through our trainings on basic tax, financial literacy and our Taxpayer Online Portal, we are empowering the FRCS MSME Community members with enhanced tax knowledge and making them become self-sufficient and independent.

Acknowledging the relationship and work between FRCS and MSME, Director Taxation, Ms. Momina Beg stated that this initiative will render a positive outcome.

“We firmly believe that providing relevant training and coaching will not only contribute to the growth and prosperity of the MSME sector but also foster a strong and mutually beneficial relationship between FRCS and its valued clients. We are highly optimistic about the positive impact this program will have on the MSME community and are fully committed to its success,” Ms. Beg said.

Embarking on another milestone, FRCS also took this opportunity to launch the MSME Guide which aims to provide a “Right from the Start” approach on a learning platform on bookkeeping and is free of charge. With the help of this guide, we strive to educate and encourage more MSMEs to learn about appropriate bookkeeping to achieve their financial goals.

FRCS will continue to nurture partnerships that empower the MSMEs to thrive, innovate and succeed.

The MSME guide can be accessed on this LINK.