The Fiji Revenue and Customs Service (FRCS) has established a Small and Medium Enterprise (SME) Support Centre at its Head Office in Nasese, Suva to provide free advisory services to all SME operators, with plans are underway to establish similar services in FRCS offices Fiji wide by the end of the year.

“This initiative is a roll out from Governments announcement during the 2019/2020 national budget address to assist small business operators on Tax and Customs related issues. It is an intentional approach to ensure we better meet the needs of micro, small and medium enterprises in Fiji who have the potential to be the big businesses of tomorrow” CEO Mr. Visvanath Das said.

“Through the FRCS Information Support Centre the Small and Medium Enterprises will be able to access services similar to that of the gold card service. The Centre will be a one-stop shop where all relevant information will be provided to ensure this important business segment is enabled to better understand their registration, filing and payment obligations as well as to assist SME to meet their reporting requirements”.

“As the Fijian Government continues to provide Tax and Customs incentives to the business communities to promote the growth and development of our economy, the Centre is also intended to bring clarity in the taxation system. These incentives are intended to achieve a very specific and desirable result that will Help Fiji Grow. Incentives that enables new business set-up, relief of tax burden, lower duty and tax costs and tax holidays to name a few”, Mr. Das said.

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A workshop on Container Control Program (CCP) sponsored by the Australian Border Force got underway at the World Customs Organization (WCO) Regional Training Centre in Nasese, Suva yesterday.

The Container Control Program was launched by the World Customs Organization to assist countries in establishing effective container selections and controls to prevent drug trafficking and other illicit cross-border activities.

The two-week long workshop was officially opened by the Australian High Commissioner to Fiji, Mr. John Feakes, who in his opening address stated that Australia remains committed to supporting and working collaboratively with regional partners to strengthen borders in preventing the trade in illicit goods and also to ensure that correct revenues and taxes are paid on legitimate goods.

“Under this particular CCP initiative, Australia has partnered with both the World Customs Organization and United Nations Office on Drugs and Crime to deliver a global product that demonstrates the significance and importance of multinational collaboration in the fight against transnational crime. As our neighbor and friend, and as the logistical hub for the Pacific, Fiji was identified to be the first nation in the region to host a CCP.”
Speaking to the participants from the Fiji Revenue and Customs Service (FRCS), Mr. Feakes said, “Each of you should be proud of the role that you will play in protecting the community, through the knowledge you will gain from this program and your work at the border.”

Revenue and Customs Chief Executive Officer Mr. Visvanath Das said that the incredible volume of containers travelling the seas from country to country and continent to continent, make them targets for actors in the illicit drug trade, and even more so for actors involved in producing and delivering counterfeit goods and merchandise.

“The global dependency on maritime trade, combined with not only sophisticated concealment methods employed by traffickers or counterfeiters, but also diverse trafficking routes, make successful interdiction and intervention difficult. This programme will be critical to how we monitor the trade supply chain. It is also my hope that the Container Control Program will bring in our border agencies and have them trained and equipped in the framework of the CCP and all working closely together.”

“We all have a responsibility to promote sustainable economic growth. More importantly, we need to protect our current and future generations from the harmful effects of illegal trade,” Mr. Das stressed.

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In a bid to ensure taxpayers are adequately familiar and comfortable with the New Tax Information System (NTIS), the Fiji Revenue and Customs Service (FRCS) has deferred the roll out the system that was schedule for next month – August 2019.

“We have reviewed the implementation process to ensure that there is sufficient awareness to our customers so that they are familiar once the system goes live,” Chief Executive Officer, Mr. Visvanath Das said.

“The awareness process began in April and we will continue to engage with our stakeholders to obtain wider range of feedback on the user-friendliness of the new tax system. The new system should be fit-for-purpose for ease of compliance from customer perspective and ease of revenue administration from FRCS perspective,” Mr. Das said.

The Revenue and Customs is simplifying and trying to create simplicity in the tax legislation and provide a reliable way where taxpayers are willing to comply.

The NTIS introduces an up-to-date online standard in Fiji where tax services will be made accessible and ensures a higher level of voluntary compliance.

“All tax types that we administer will be administered through this new system. The first phase will be the sign up process and registration followed by other processes through subsequence releases such as Value Added Tax (VAT), Service Turnover Tax (STT), Fringe Benefit Tax (FBT), Provisional Tax, Telecommunication Levy, ECAL, Refund PAYE, Collections Management, Tax Agents and Associated Taxpayer Request such as tax clearance, tax compliance, filing extension, payment extension, Time to Pay Arrangement (TTPA), Statement of Tax Account (STA) extraction,” Mr. Das said.

“The second phase will include Audit Investigations, De-registration, Stamp Duty, Tertiary Student Loan Scheme (TELS), Objections Review, Capital Gains Tax (CGT) and other taxpayer requests,” he added.  

“The new system will allow taxpayers to perform their tax obligations electronically through OnlineTaxpayer Portals,” Mr. Das said.

Taxpayer Online Services Signup forms are available on our website under the link:

https://www.frcs.org.fj/our-services/taxation/taxation-forms/registration-change-of-address-forms/

Visit any FRCS office Fiji wide and obtain a onetime log-in code to the TPOS. Overseas taxpayers may email their completed form to info@frcs.org.fj but will be required to attach scanned proof of identity documents.

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Officers from the Fiji Revenue and Customs Service (FRCS) and the Criminal Investigations Department arrested a woman this morning for allegedly importing 115grams of hard drugs- Methamphetamine through Parcel Post.

The drugs which were concealed inside a bottle of peanut butter arrived from the United States of America to Nadi on Wednesday and was addressed to a local person. Customs Officers at the Parcel Post scanned the consignment and discovered the white powder which was later tested positive for Methamphetamine.

“The parcel was then sent to the Suva Post office through control delivery and Officers arrested the lady when she came to pick the parcel today. The estimated cost of Methamphetamine is $115,000 with social cost associated to be around $210,000”, Chief Executive Officer Mr. Visvanath Das said.

“I commend our officers for carrying out their duties diligently in ensuring our borders are protected from the infiltration of illicit drugs. FRCS officers have been reminded to stay vigilant at all times and to foil attempts by smugglers who may take advantage of the busy passenger and cargo flows at the control points”.

“We are also maintaining close contacts with local and overseas enforcement agencies to strengthen intelligence exchange to combat the smuggling activities”, Mr. Das stressed.

Police Commissioner Brigadier General Sitiveni Qiliho is pleased that the partnership with other law enforcement agencies continue to produce positive results.

“Whether it’s a few grams or kilos, every seizure counts. If we are able to prevent one more innocent life from the harmful effects of the illicit drug trade, that in itself is a major victory for law enforcement”.

“Methamphetamine is being glamourized from what people watch on television and in the movies. The truth however, is that it is a danger to everyone in society, and a recent example was shared by a mother who said she knows and is in contact with a 16year old boy who has dropped out of school, assaulted his mother and sister, and stabbed his brother because of his addiction which is why we cannot allow Fiji to fall into drugs, because the dangers associated with meth is real and it has devastating consequences on everyone that comes into contact with it”.

The Fiji Revenue and Customs Service (FRCS) is working with the Bank of the South Pacific (BSP) and Bank of Baroda on a real time e-payments mechanism to be part of the New Tax Information System (NTIS) which will be rolled out in August this year.

Through this initiative, bank customers will use their respective online banking portals to make payments to FRCS and payments will be validated in real time against the specific tax types and amounts payable.

“Effective August this year, once you log into the New Tax Information System, you will be able to see the types of taxes that are due, the amount payable and the penalties that these overdue taxes have attracted. Once you have this information with you, log into your BSP or Bank of Baroda online banking portal and make your payments from anywhere, anytime. It saves time and is completely paperless”, CEO Mr. Visvanath Das said.

“These payments will be captured real time into our system and will be reflected in the taxpayer’s ledger same time. This will reduce the number of suspense cases we get. For Customs payments through ASYCUDA it will also mean that business won’t need to have a prepayment account with FRCS. They can keep their own money- earn interest on it and pay FRCS in real time even in the weekends”.

Association of Banks in Fiji (ABIF) Deputy Chairman Mr. Sudhansu Sekhar Khamari who is also the Chief Executive Officer for Bank of Baroda Fiji Operations while applauding the initiative said that money transfer between accounts usually takes a few minutes, while a wire transfer or a postal one may take several days. Customers will not waste their time waiting in lines. This will be convenient to customers. All transfers can be performed at anytime, anywhere.

The New Tax Information System (NTIS) is designed to assist the tax office to provide a wider range of tax services and more importantly it allows taxpayers to experience and access the wide range of tax services in a more convenient way.

We are simplifying and trying to create simplicity in the tax legislation and provide a reliable way where taxpayers are willing to comply. This New Tax Information System (NTIS) introduces an up-to-date online standard in Fiji where Tax services will be made accessible and ensures a higher level of compliance.

The new Tax system is also designed to assist taxpayers in a more personal way that allows them to access Tax services like requests for TIN and Joint Card registration, Tax Compliance Certificates, Tax Clearances, Tax Exemptions, Statement of Tax Accounts, Objections etc. online without having to visit any FRCS office.

To access a single tax service, the NTIS does not necessarily require the user to have a computer. In other words, users can access their tax services through android electronic gadgets such as phones, ipads, tablets etc. as long as there is accessible internet coverage.

ENDS

A week long workshop on Border Fundamentals is currently underway at the Fiji Revenue and Customs Service Regional Training Centre, Nasese, Suva.

The workshop organised by the Australian Border Force in collaboration with Australian High Commission and Revenue and Customs will enable participants from the Pacific region to enhance their skills to protect our borders.

Participants from 13 countries namely Commonwealth of Northern Mariana Islands, Cook Islands, Fiji, French Polynesia, Guam, Kiribati, Nauru, Niue, Palau, Papua New Guinea, Solomon Islands and American Samoa are attending the workshop.

Revenue and Customs Chief Executive Officer, Mr. Visvanath Das during his opening address stressed on the need to strengthen partnership and collaboration to combat border threats.

“We cannot combat threats at our borders alone. We must work collaboratively, actively seek to share information and look for opportunities to develop relationship with colleagues in the region,” Mr. Das said.

“Managing threats at the Border is a complex and challenging task. We frequently see evidence of our border officers making successful interventions, disrupting organised criminal syndicates individual opportunist seeking to do harm in the Pacific region,” Mr. Das said.

“Each of you have a wonderful opportunity this week to enhance your skills and learn from subject matter experts. We can always benefit by benchmarking and learning from others,” he added.

Mr Das acknowledged the partnership of Australia, Oceania Customs Organisation (OCO) and Pacific Immigration Development Community. 

Australian High Commissioner, Mr. John Freakes expressed similar sentiments.

“In today’s world, having strong border security has never been more important. We know that organised crime syndicates and people traffickers are active in these regions and can take advantage of any vulnerability that they can identify to circumvent our border security measures. And it is only through our strong partnerships and sharing information that we can collectively identify and manage those risks,” Mr. Freakes said.

“At times, you have to manage and carefully balance the competing factors of facilitation versus compliance. You have to make complex judgments and assessments within incredibly short time frames. The intent of this course is to provide you with the skills that will enable you to identify risks and manage threats at your borders,” he added.

The workshop will conclude this Friday (31/5/19).  

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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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