Further to FICAC’s charge of 25th October 2018 against Fiji Revenue and Customs Service (Revenue & Customs) Director – Intel, Compliance and Investigations – Mr. Shameem Khan – for Abuse of Office and General Dishonesty, the Revenue & Customs will not be suspending Mr. Khan from his current duties.
The Service will reconsider its position pending receipt of further disclosures and /or evidence from FICAC on the charges brought against Mr Khan.
END
‘We are committed to increase engagement with taxpayers to ensure voluntary compliance.”
These were the words of the Fiji Revenue and Customs Service Chief Executive Officer, Mr. Visvanath Das during the CEO’s Forum yesterday evening at Revenue & Customs Complex Nasese.
Mr. Das while speaking at the forum highlighted Revenue and Customs commitment in working closely with taxpayers to increase revenue and help Fiji grow.
Mr Das said this is one of the reasons for the tax office efforts to simplify the tax system through reforms.
“Our role is not just simply enforcement; we would like to see the bigger picture that is to help Fiji grow. We are here to provide clarity and increase engagement,” Mr. Das said.
“We have engaged in digital transformation. Two major digitalisation projects are Fiji’s ratification to the trade facilitation agreement therefore the need to look at single window approach and the $48 million New Tax Information System (NTIS),” he said.
“In this effort, we should appreciate the data cleansing effort undertaken. We need your cooperation. This in turn will assist you in getting better quality information from the tax office,” he added
Mr Das said the laws, reforms and new projects by the tax office is to create a deterrent effect.
“Through our Compliance Improvement Strategy 2017/2018, we have only 47 percent compliance out of the 51,000 active business taxpayers,” Mr. Das revealed.
“We can do much better if we take greater responsibility in terms of voluntary compliance. We want to work with you and want you to voluntary comply which saves the hassle of imposing penalties unnecessarily,” he said.
Mr. Das further emphasized this when questioned by Fiji Hotel and Tourism Association (FHTA) CEO Fantasha Lockington – What is a priority area for FRCS? The Compliance Improvement Strategy is a key focus area for the organisation as it highlights high risk industries and how we will engage with them to improve compliance.
The CEO forum is one of the many avenues that Revenue and Customs is using to engage with taxpayers.
END
The Revenue and Customs was recognized for its support towards the development of Regional Tax Administrations at the annual Pacific Financial Technical Assistance Center (PFTAC) Awards last night.
The award for “Supporting Regional Tax Administration Development” was received by the Chief Executive Officer of the Fiji Revenue and Customs Mr. Visvanath Das from IMF Technical Assistance Advisor Mr. Charles Jenkins.
“Whilst we have a mandate to improve our own efficiencies, we also want our fellow tax and customs administrations in the region to develop and modernize. And in the globalized environment which we are now operating in, there really is no magic recipe. We each need to find the solutions and adjustments which fits best in our individual organization’s context”, Mr. Das said.
“At Revenue and Customs, we have realized the need to benchmark against international best practices and undergo independent assessments and evaluation of our systems and processes. We have also been fortunate to have very supportive development partners who have shared with us their experience and practices to develop new frameworks and improve on existing frameworks and practices”.
“I appreciate the recognition that Revenue and Customs has received and I also affirm that we are continuing on our journey towards world class. People is the first strategic focus area of our Organization’s Strategic Plan and all our achievements including this one are the result of our people’s efforts and commitment. Therefore, this award is dedicated to 800 dedicated staff in our 10 offices around the country”, the CEO stressed.
“We will continue to strive for outstanding customer service, a satisfied and high-performance workforce and modernized and relevant processes and laws enabled by smart technology that will help Fiji and the Pacific grow”, he concluded.
The Annual Awards recognizes the efforts of Pacific Island countries whose financial tax organizations continue to create a benchmark for other Pacific Island Countries.
END
The 15th Pacific Islands Tax Administrators Association (PITAA) Heads meeting got underway at the Tanoa International Hotel in Nadi.
PITAA Executive Chair and Chief Executive Officer of Fiji Revenue and Customs Mr. Visvanath Das is chairing the week long meeting, attended by sixteen (16) regional tax heads. Officials from International Monetary Fund (IMF), Pacific Financial Technical Assistance Centre (PFTAC), New Zealand Inland Revenue Department, Inter- American Center of Tax Administration (CIAT), Organization for Economic Co-operation and Development (OECD) and Oceania Customs Organization (OCO) are also attending the meeting.
In his opening speech Mr. Das highlighted the need for Pacific Island Tax Administrators to work together to achieve the common goals of their respective Tax Administrations. He highlighted the need for Tax reforms for ease of doing business.
“Tax reforms are mostly designed to meet one or more of several macro objectives which includes, promoting fiscal sustainability and macroeconomic stability, improving private sector investment climate, strengthening export competitiveness or improving governance and transparency in public resource management,” Mr. Das said.
“Fiji is viewed as a big brother in the Pacific, celebrating 9 consecutive years of economic growth averaging 3% year on year and in the last financial year Fiji Revenue & Customs Service achieved tax revenue growth of 10% over the same period previous year.”
“This is being fueled by increased investment, broader tax regimes and strong demand due to Fiscal policy. For example, in the 2017/2018 budget announcement Government increased the income tax threshold to $30,000 which led to an increase in cash circulation by approximately $22m FJD,” Mr. Das told the participants.
“Despite the strong growth, several factors have substantially increased revenue risks and the complexity and volume of service, audit and other compliance interventions by revenue authorities. Amongst them are growth in the international trade, supported by e-commerce developments, changes in employment patterns and growth in the numbers of contractors, innovations in business structures and financial products, and the commoditization of tax schemes,” Mr. Das said.
The meeting concludes on Thursday 13 September 2018.
END
The Revenue and Customs has expelled a renowned automotive company from its Gold Card Services Program for abuse and non-compliance to Customs laws on numerous occasions.
The Company breached Section 137 of the Customs Act of 1986 whereby the Company failed to adjust the price of vehicle parts to reflect the import duty reduction granted by the Government to make this affordable for Fijians. The duty reductions were not passed down to consumers.
“The Gold Card Initiative is based on high levels of trust and partnership towards voluntary compliance with rewards including priority facilitation, service and associated benefits. It is, therefore, imperative that Gold Card members adhere to and operate within the respective legislative framework at all times. Gold Card members must be role models for all taxpayers”, Chief Executive Officer Mr. Visvanath Das said.
Audit and Investigations into the business affairs of the company brought to light 2 instances of abuse of duty concessions wherein duty concessions were applied but the product delivered to a non-concessionaire. On another two occasions, duty reductions were not reflected in the pricing of the products thus attracting fines of $100,000. There were 3 further separate instances of tariff misclassification to minimize duty liability.
“We work very closely with our taxpayers providing support and guidance on issues for voluntary compliance. However, we noted in this instance that the Company failed to implement mitigating measures to address recurring offences. We have room for technical and legislative interpretational matters to be amicably resolved. However, we have zero-tolerance for violation of straightforward and simple compliance matters’’, Mr. Das stressed.
“We will continue to work with this company to assist them to become compliant again. It would be a happy day for the Service if this company in time to come regains its Gold Card status,” expressed Das.
END
Twenty-three (23) trade facilitation agencies have gathered to draft a workable Single Window vision customised for Fiji to ensure secure trade.
World Bank facilitators are currently conducting a Single Window workshop for these agencies organised by the National Trade Facilitation Committee (NTFC) at the Revenue and Customs Complex, WCO Regional Training Centre in Nasese, Suva from 14th – 15th August, 2018.
While opening the workshop this morning, Fiji Revenue and Customs Service (Revenue and Customs) Chief Executive Officer and Chair of NTFC, Mr. Visvanath Das said the Fijian Government has given a firm commitment to implement single window following the ratification of the Trade Facilitation Agreement on 22 February 2017, which aims to increase efficiency and effectiveness for trade facilitation agencies.
“Fiji’s position as the hub of the Pacific and the trade and economic development opportunities available through the global trade opportunities as well as regional trade agreements needs to be capitalized on,” Mr. Das said.
Mr. Das said the twenty-three agencies aspired to construct one single window clearance system for traders and global supply chain actors. He emphasized that every journey begins with a single step and highlighted the importance of each agency taking ownership.
Present at the workshop, Permanent Secretary for Ministry of Industry, Trade & Tourism, Mr. Shaheen Ali acknowledged the efforts of the Fijian business community, for working with the Government in achieving its objectives of improving Fiji’s overall trade performance and helping to establish Fiji as the modern hub of the Pacific, as set out in the 5-Year and 20-Year National Development Plan.
Mr. Ali said the creation of a Single Window system, for the coordinated submission and flow of import export documents, is one of the most effective ways of expediting the movement and clearance of goods and ultimately improving trade.
“Essentially, a Single Window can be described as a system that allows traders to lodge documentation to achieve entry, clearance, and release of their goods, from a single convenient location. A Single Window is intended to save time, eliminate redundancy, and lessen the administrative burden on the global trading community,” he said.
“In practice, the long-term objective is to transfer from a paper-based procedure to a single window electronic system. In order for the Single Window system to be effective, close cooperation and coordination between all departments and authorities involved are vital,” he added.
Mr Ali said in order to progress the work on single manifest, a Time Value Survey is currently being undertaken, which will determine the actual time and cost savings of moving from the current system to the single manifest.
“In addition, Revenue and Customs is piloting an electronic platform, which links all trade facilitation agencies to the ASYCUDA World. The agencies will be able to access manifests electronically and screen consignments for either clearance or further investigation,” he added.
The workshop concludes on Wednesday 15 August.
END
The Fiji Revenue and Customs Service (Revenue and Customs) Customs Border Maritime Compliance Team intercepted 50 R22 Gas Cylinders which is an Ozone depleting substance from a fishing vessel at the Suva Wharf yesterday.
After receiving advance notification, the Compliance team noted the vessel was in the Australian EEZ but avoided Australian Border Officials and entered Fiji waters.
“This was suspicious and thus the vessel was flagged by our Customs Border Maritime Compliance Team comprising of Customs Officials searched the vessel and was successful in detaining Ozone depleting gas cylinders,” Revenue and Customs Chief Executive Officer, Mr. Visvanath Das confirmed.
“The vessel falsely declared the amount of R22 Gas Cylinders on board and it was concealed in a manner with a clear intention of smuggling the Cylinders,” Mr. Das said.
“I commend the efforts of Customs Border Maritime Compliance Team in detecting the smuggling of the ozone depleting gas,” he said.
Mr. Das assured Revenue and Customs commitment in supporting the well-being of the environment and working in partnership with relevant stakeholders in combating illegal imports of ozone depleting substances.
The cylinders have been handed over to the Department of Environment.
END
The Fiji Revenue and Customs Service (Revenue and Customs) in collaboration with World Customs Organisation (WCO) and Japan Customs is conducting a four-day WCO Sub-Regional workshop on Passenger Control.
The workshop is currently underway at the WCO Regional Training Centre at Revenue and Customs Complex from 6-9 August, 2018.
A total of 16 participants from Papua New Guinea, Samoa, Tonga, Timor-Leste, Vanuatu, Mongolia including Customs Officers from Revenue and Customs will be learning about passenger control and security challenges from WCO, Australia Border Force and New Zealand Customs experts.
This workshop is part of WCO’s Asia/Pacific Security Project, which was launched in March 2017 in Bangkok.
While opening the workshop this morning, Revenue and Customs Chief Executive Officer, Mr. Visvanath Das stressed the need to collaborate with WCO members to strengthen passenger controls and security.
“Passenger Controls is a security challenge. The ideal would be one where a coordinated approach and an effective risk analysis and targeting approach is utilized thorough the use of advanced passenger information. But we all know that the reality on the ground is different – we all face difficulties/challenges in achieving this. Nevertheless, we know that a coordinated border approaches can turn these challenges into opportunities creating win-win for all parties,” Mr. Das said.
“Asia and the Pacific region have become the centre of global attention due to being the powerhouse for rapid global economic growth in the more recent times – in terms of trade flows, illicit financial flows, drugs and people flows,” he said.
“Together with the rapid economic growth and explosion of travel and tourism, passenger controls have become a topic of pertinence for many customs administrations. The refugee crisis and conflict and terrorism activity in some parts of the world have also triggered a need to prioritize the passenger control processes and systems we have in place,” he added.
Mr. Das said effective border mechanisms against potentially dangerous persons can be greatly assisted by co-operation between Customs administrations and other competent border control agencies at the national and international levels, and that exchange of information can significantly aid risk assessment and targeting and, as a consequence, improve the facilitation of legitimate travel.
“The clearances at border crossings can be expedited if the interventions are based on an integrated risk management framework which addresses the concern of all the agencies at the border,” he said.
“The proper balance between the needs of Customs enforcement and the facilitation of legitimate travel can only be achieved if Customs enforcement is intel and risk based,” he said.
Mr. Das urged all participants to learn as much as they could from the workshop and apply the same to their respective customs administrations.
“The safety and security of our nations and our people are in our hands – so we need to enhance our capability and competency – and this workshop provides an opportunity to do so,” he said.
Japan Customs Deputy Director Customs and Tariff Bureau, Mr. Norikazu Kuramoto expressed similar sentiments.
“We are gathered here to talk about passenger control which is the key component of the WCO security project. The WCO experts from Australian Border Force and New Zealand will share a good deal of the know-how and good practice. Let us learn, exchange views and connect with each other and take advantage of this golden opportunity,” Mr. Kuramoto said.
“We implemented the WCO security project in the Asia-Pacific region last year. We keep ourselves committed to the program and contribute to the regional wide air force to bring better security,” he said.
WCO Facilitator from Brussels, Mr. Wesley Ferris commended Fiji Revenue & Customs training room facilities provided for the workshop and looks forward to interacting with the participants.
The workshop will end on Thursday 9th August.
END