Fiji’s Financial Underbelly: $220 Million Worth of Fraudulent Schemes Uncovered by Intelligence Unit

A staggering $220 million worth of financial crimes were detected by the Fiji Intelligence Unit last year, according to unit Director Razim Buksh. The revelations come as authorities in the Pacific nation crack down on tax evasion and money laundering activities.

Whistle-Blower Tips Lead to Significant Increase in Tax Compliance

Buksh revealed that 317 intelligence case dissemination reports were issued to the Fiji Revenue and Customs Service, highlighting suspected tax crimes, money laundering activities, and other fraudulent financial schemes. A whopping 70 percent of these reports were related to proactive “whistle-blower” tips submitted by the unit to the revenue authority.

Investigations Result in Tax Compliance and Penalties Assessed

The unit’s information was used to investigate an additional 1,279 individuals and businesses involved in tax and customs violation cases in 2017 alone. This has led to a significant increase in tax compliance, with total tax and penalties assessed at $6.6 million as a result of the referrals.

Most Common Type of Fraudulent Activity Detected

The most common type of fraudulent activity detected by the unit was tax evasion by businesses dealing in the wholesale and retail trade of motor vehicles, which accounted for 21 percent of the total assessments.

Strengthening Collaboration between Law Enforcement Agencies

To combat these financial crimes, authorities are stepping up their efforts to strengthen collaboration between law enforcement agencies. A meeting between Fiji Revenue and Customs Service CEO Visvanath Das and Buksh discussed opportunities to further enhance tax and customs compliance and fraud investigations.

Referral Reports Play a Crucial Role in Uncovering Fraudulent Acts

The unit’s referral reports play a crucial role in uncovering fraudulent acts where businesses fail to pay their fair share of taxes, according to Das. Two revenue authority officers are also seconded to the unit on a full- time basis to work closely with investigators.

Warning to Tax Violators: Honesty is Always the Best Policy

While authorities acknowledge that the overall culture of tax compliance is improving in Fiji, they warn that those who violate their tax obligations will be dealt with severely. The crackdown on financial fraud sends a clear message: honesty is always the best policy when it comes to paying taxes.