The Chief Executive Officer of the Fiji Revenue and Customs Service (FRCS) Mr. Visvanath Das announced the third phase of the Electronic Fiscal Device (EFD) regulation rollout plan this afternoon.

The phase three which was gazette on 18^th May 2019 will cover the following groups of businesses and operators (tabulated below) and the deadline for these business to comply with the regulation is 31^st July 2019.

In a press conference this afternoon, Mr. Das highlighted a list of all those taxpayers who need to be compliant before 31^st July 2019 is available on the FRCS website and can be accessed through the following link https://www.frcs.org.fj/our-services/vat-monitoring-system-vms/.

“For businesses/individuals whose names are not on the list but fall under the business categories listed above are urged to update their information at any FRCS office nearest to them and voluntarily comply, as eventually all businesses will have to comply to the Regulations.

Mr. Das stressed that the objective of this system is not only to have efficient and reliable software to encourage voluntary compliance but at the same time collect the revenue due to government. It also plays a broader role in alignment to the government roadmap for development of Fiji, greater financial inclusion initiatives as well as push towards a cashless economy, addressing the black money challenges.

The Fiji Revenue and Customs Service (FRCS) Board has approved a $0.35 million reward for a whistle blower that led to the recovery of $6 million in tax (excluding penalties).

This has taken the overall whistle blower pay out to $0.86 million yielding total tax and penalty collections of $28m since the introduction of the whistle blower policy in 2014.

FRCS Chief Executive Officer, Mr. Visvanath Das has revealed that the taxpayer in question is again a supermarket that has a number of chain stores around the country. He added that given the gravity of the offence committed, FRCS applied maximum penalties as it involved trust funds – the Value Added Tax. The total tax bill, in this instance, was $12million.

“The whistle blower informed FRCS of serious financial statement fraud committed by this supermarket to understate income tax and Value Added Tax (VAT). A systemic tax evasion strategy was executed by this supermarket to defraud the State with the legitimate revenue,” Mr. Das said.

The tax audit, which amongst other measures involved carrying out of a raid and independent third party information verification, found that the income statement and balance sheet of the company were manipulated such that taxes were evaded. “The supermarket, over the years, inflated trade creditors amounts, did not account for certain receipts other than direct supermarket sales, purchased properties in family names using company funds, over claimed zero rated sales, undeclared incomes from other parts of business such as milk bar etc. and engaged in general non-compliance behaviour,” Mr. Das added.

Mr Das is yet again giving stern warning to all taxpayers engaged in tax fraud that full brunt of tax laws will be applied which includes prosecution and seeking jail term. He reiterated that the Fijian Government has significantly reformed the taxation system that provides a very low tax burden and there is no incentive whatsoever to evade or avoid taxes. Tax laws, in recent times, have been modernized to seriously deal with any non-compliance behaviour.

“Let me make it very clear. Don’t even try defrauding, it’s not worth it. Therefore, I would encourage voluntary disclosure right away before it’s too late and you will have to face the full brunt of the law.”

If you have evidence of a business or taxpayer committing Tax or Customs fraud, you are encouraged to report through 9907740 | 9980489 or email directly to ceo@frcs.org.fj.

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A week-long World Customs Organization (WCO) Workshop on Time Release study (TRS) is underway at the WCO Regional Training Centre at Revenue and Customs Complex in Suva. The workshop is being attended by 40 participants from Fiji Revenue and Customs Service, Biosecurity Authority of Fiji, Department of Immigration, Ministry of Health and Medical Services and Fiji Ports Corporation Limited.

The facilitators of the workshop are Mr. Samson Bilangna, Senior Technical Officer from the WCO and Mr. Sompasong Amphaengphai, WCO TRS Accredited expert, Lao PDR Customs. The workshop is funded by the Customs Co-operation Fund Japan.

During the workshop, participants will learn and share experiences with the facilitators on the significance of carrying out a TRS and how the FRCS and other stakeholders involved in facilitating trade can benefit from the insight and findings of the TRS.

The expected outcomes of the workshop include:

• Enhanced competence and confidence in the implementation of the WCO TRS tool, in collecting, recording and analyzing the data as well as reporting and conclusion of a TRS; and
• Competence to build a base to conduct national TRS to support Customs-to-Government, Customs-to-Customs and Customs-to-Business initiatives.
• FRCS and all stakeholders continue to work towards reducing the clearance time from the arrival until release of goods by finding ways to introduce additional trade facilitation measures.

While delivering the opening address on behalf of the FRCS CEO, the chief guest Mr. Fazrul Rahman (Director Revenue Management for FRCS), thanked all the agencies that agreed to participate in the workshop, emphasising the positive collaboration that has been enduring amongst the border agencies in Fiji.

He also re-iterated the need to appreciate the correlation between efficient border clearance processes to increase in trade and further to national economic growth. Furthermore, he also highlighted the need to identify where there is improvement needed. “We will know where we all stand and more importantly where the gaps or opportunities are that we must address. And we must address these.”

The workshop ends on Friday 21 December 2018.

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A weeklong Sub-Regional Workshop on Valuation is underway at the World Customs Organization (WCO) Regional Training Centre at Revenue and Customs Complex in Suva.

The workshop was officially opened by Chief Executive Officer, Mr. Visvanath Das who highlighted the need for developing countries to cope up with development in technology and move ahead with the rest of the world.

“Customs valuation is a core tool for customs administration around the world. Globally 98 per cent of the global trade accounts for transaction under the World Trade Valuation Agreement. This Workshop will feature a range of Customs valuation issues, including various articles of valuation, including the goods supplied under warranties, royalties, license fees and transfer pricing,” Mr. Das said.

“This workshop will deal with the nature and significance of customs valuation systems and practices and their international standardization. It will provide insights into the various case examples and examine the types of measures that could contribute to effective valuation of import shipments.”

Lead Facilitator Mr. Ian Cremer of World Customs Organization (WCO) stressed the need for striking a balance between Revenue collection and trade facilitation. “Commercial practices and processes are diversifying, pilferage of packages and e-commerce are some of the ongoing issues. Customs Officers should understand legitimate price practice especially those in the valuation area.”

Head of Regional Office for Capacity Building (ROCB) Mr. Kazunari Igarashi in his welcome speech told participants that WCO is discussing ways to support small island developing states in areas of International trade. “Manipulation of trade invoices are common occurrence and it is something that will be discussed in the workshop”.

The workshop is funded by WCO and supported by Japan Customs and ROCB. Twenty- four participants from Fiji, Tonga, Samoa, Vanuatu and Papua New Guinea are part of the workshop.

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A Memorandum of Understanding (MOU) was signed between Fiji Revenue and Customs Service (FRCS) and the Land Transport Authority (LTA) this morning, which will encourage the promotion of mutual cooperation in the areas of information sharing and other related matters.

Under the MOU, both organizations will implement an effective framework on the collection of stamp duty on transfer of motor vehicles and public service vehicles permits.

“As stated in the MOU, both the parties agree that all transfers of motor vehicles and public service vehicles permits registered with LTA must be subject to Stamp Duty with exceptions in accordance with the requirements in the Stamp Duties Act 1920,” Chief Executive Officer Mr. Visvanath Das said.

“As part of the MOU, both organisations will pursue staff development joint training programs and staff exchange where appropriate and if necessary”.

“More importantly, LTA and FRCS will have controlled access to its online system database to assist in the administration and enforcement of their laws and LTA will provide the services required for the members of the FRCS Gold Card Services”, Mr. Das stressed.

LTA Board Chairman Vijay Maharaj said the signing of MOU was a milestone achievement for both the organisations and thanked FRCS for partnering with LTA.

“The MOU strengthens both the organisations that will not only make inter-organisational relationship more coherent but also make individual officers from the respective organisations more approachable and efficient.

“Although, we are two separate organisations with different strategic goals but our national goals are the same,” Mr. Maharaj said.

“Additionally, there are certain areas of work within the two organisations which are connected to each other and in some cases dependent on each other’s decisions.

Some of the areas which would be effectively covered under the MOU are;

• It will promote and strengthen information sharing and develop mutual beneficial process of cooperation and exchange.
• Enable organizations to provide controlled access to its online system to assist in the administration and enforcement of their laws.
• Training opportunities and online systems.

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The Fiji Revenue and Customs Service (Revenue & Customs) signed a Memorandum of Understanding (MOU) referred to as Customs Co‐operative Arrangement (CCA) with Hong Kong Customs on Wednesday, 24th October, 2018.

The Revenue & Customs Chief Executive Officer, Mr. Visvanath Das and Commissioner of Customs and Excise, Mr. Hermes Tang signed the CCA at the Customs Headquarters Building in Hong Kong.

The MOU enables respective administrations to strengthen co-operation in the fight against transnational customs crimes by exchanging information.

“The aim of this MOU is to enhance cooperation with Hong Kong Customs in terms of trade facilitation and law enforcement,” Mr. Das said.
“Through this CCA, both Customs administrations will be able to share information to combat transnational crimes and facilitate legitimate trade,” Mr. Das said.

“We appreciate this opportunity and partnership with Hong Kong Customs to learn and improve Customs administration in Fiji,” he added.
Currently, Hong Kong Customs has signed Customs Co-operative Agreements/Arrangements with 25 customs administrations, consisting of the General Administration of Customs of the People’s Republic of China and 24 overseas customs administrations.

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With the theme “Building Sustainability and Resilience in Tax Administration”, Fiji is hosting the 39^th Commonwealth Association of Tax Administrators (CATA) Technical Conference at the Sheraton Fiji Resort and Spa, Nadi, Fiji from 12th – 16th November 2018.

Thirty-three (33) Commonwealth Countries comprised of 135 delegates are attending the conference including the CATA President representative Mr Abu Tariq Jamaluddin, outgoing Chairman of CATA representative Mr Dhanraj Ramdin, Vice Chair of CATA Mr. Jon Swerdlow, Executive Director of CATA, Mr.  Duncan Onduru, Minister for Revenue, Samoa Hon. Tialavea John Hunt and Associate Minister for Revenue, Samoa Afioga Lenatai Victor Tamapua.

Speaking at the Conference (Tuesday 13/11), CATA President Representative Mr Abu Tariq Jamaluddin said that “the theme for this year’s conference was chosen in view of the observed growing taxpayers’ appetite for digital services and the emergence of new business models consequent to globalization impacting our tax system”.

CATA Executive Director, Duncan Onduru emphasized that “this annual CATA event has over the years been used as a global pulse to reflect on how members can best respond to emerging challenges in the area of tax. Today, most of the tax administrations have many areas of convergence both in their governance and operational structures, thanks to this event”.

Executive Director CATA emphasized that on the global arena, majority of our member countries are grappling with numerous issues. The major consequent has been the inability of revenue mobilisation to meet the developmental needs putting pressure on tax administrations to plug the huge fiscal deficits. This calls for building sustainability and resilience in tax administration to confront these challenges – hence the theme for this year’s conference”, he added.

Fiji Revenue and Customs Service Chief Executive Officer Mr. Visvanath Das in delivering Fiji’s opening remarks said that “the theme for the conference was befitting for the fast evolving and competitive environment of the 21^st century”.                                                                                                       

Mr. Das said “Despite our geographical locations and differences, we all operate in environments that are void of certainty and predictability; where the ever changing role and mandate of Tax administrations creates the need for constant organizational reforms to enable us to respond to new and emerging challenges in a timely manner”.

He highlighted that “One emerging issue which Tax Administrations have traditionally shyed away from is in communications and how we improve and enhance our services to our customers, through use of various mediums to ensure we encourage voluntarily compliance”.

In closing Government’s opening remarks Mr. Das congratulated CATA and its members on its ruby anniversary that commemorates 40 years of global partnership before declaring the 39^th CATA Technical conference officially open.

The Conference will have 9 technical sessions and concludes on Friday 16 November 2018.

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The 39th Commonwealth Association of Tax Administrators (CATA) Management Committee Meeting was convened today at Sheraton Fiji. This meeting returns to the Pacific after 21 years.

Today’s meeting saw the appointment of Fiji Revenue and Customs Service CEO – Mr Das as Chairman for the CATA Management Committee.  This is the first time ever for a Pacific Island country to hold the position of Chair. Fiji will now Chair the CATA Management Committee for the next 3 years.

Mr. Das in his incoming speech as the Chair for the CATA Management committee expressed his appreciation and gratitude for Fiji’s nomination  and said he looked forward to Fiji’s term as chair and the opportunity to work with Members to take CATA to new heights. He reiterated that this is another milestone achievement for Fiji Revenue and Customs Service in terms of Fiji providing leadership towards an International Organisation such as CATA with 46 member countries and that Fiji is yet again ready to make another impactful contribution on the international stage.

CEO Fiji Revenue & Customs also emphasized that his focus as Chair will not just be about meeting member needs today but to ensure preparedness of Administrations for the future, particularly  with emerging issues such as Technology, Big Data, Artificial Intelligence, Base Erosion and Profit Shifting and  addressing the key challenges  around Resilience and Sustainability of Tax Administrations whilst modernising and future proofing administrations.

The CATA conference will officially open tomorrow morning (Tuesday 13/11) for 4 days and will cover 9 technical sessions to discuss important policy and technical issues of current concern to member tax administrations.

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