Tax Compliance Risk Management

Regional and local tax administrators are attending a three-day workshop at the Fiji Revenue and Customs Service complex discussing and sharing ideas to strengthen tax compliance, through risk management and profiling.

The workshop has been organized by the Pacific Financial Technical Assistance Centre (PFTAC) and the Pacific Islands Tax Administrators Association (PITAA).
Tax Administrators from Samoa, Tonga, Vanuatu and Papua New Guinea are attending the workshop.

Revenue and Customs Chief Executive Officer Mr. Visvanath Das while opening the workshop highlighted the need for proper risk management application in this modern era. “In Fiji we have developed a Compliance Improvement Strategy which identifies industries and taxpayer groups under the radar and this is done through a risk profiling and assessment process. Thereafter identifying various mitigation to address the noncompliance and the risks.

It outlines specific strategies for taxpayer services, large & international, medium, small, construction, real estate and supermarkets to commit themselves to their tax obligations, and enhance voluntary compliance”.

“Several factors have substantially increased revenue risks and the complexity and volume of service, audit and other compliance interventions by revenue authorities. These include the growth in 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.

“Therefore, tax administration should have in place strategies and structures to ensure that non-compliance is minimized. We have to be smarter about the way we maximize return on Tax Administration’s limited resource as well”.

PFTAC Coordinator Mr. David Kloeden told participants that Revenue and Customs has produced impressive results after adopting the Compliance Improvement Strategy particularly in the areas of returns lodgments.

“So during the workshop we will be looking at how tax administrations can learn from Fiji and improve their compliance level,” he said.

The workshop concludes today.

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