Fiji Cracks Down on Tax Evasion with New Beneficial Ownership Requirements for Companies
In a bid to strengthen its tax regime and clamp down on tax evasion, the Fijian government has introduced new beneficial ownership requirements for companies operating in the country. The move is aimed at enhancing transparency and ensuring that all companies registered in Fiji comply with anti-money laundering regulations.
What are the New Requirements?
According to recent changes to the country’s Companies Act, all companies incorporated in Fiji are now required to submit a Beneficial Ownership Declaration (BOD) form as part of their registration process. The BOD form seeks to identify the true beneficial owners of a company, which is defined as an individual or entity that has control over 25% or more of the company’s shares.
Who Does it Apply To?
The requirement applies to all companies, including those registered under the Fiji International Company Act and foreign companies operating in the country with foreign investment registration certificates. Foreign investors, however, are exempt from providing TIN cards/TIN letters if they have already submitted a foreign investment registration certificate to the relevant authorities.
What Supporting Documents Are Required?
To comply with the new requirements, companies must submit a range of supporting documents, including:
- Photo identification with date of birth information for all individuals listed in the application
- TIN cards or letters for each individual
- An article of association (if required)
- Foreign investors may also need to provide:
- A foreign investment registration certificate
- Letter of authorisation for agents
Why is this Important?
The Fiji Revenue and Customs Authority has stated that the new requirements are aimed at improving tax compliance and reducing the risk of tax evasion in the country. “Beneficial ownership transparency is essential for ensuring that companies pay their fair share of taxes and comply with anti-money laundering regulations,” said a spokesperson for the authority.
What Happens if Companies Fail to Comply?
Companies that fail to comply with the new requirements may face penalties, including fines and even deregistration. The Fiji government has emphasized its commitment to implementing robust measures to prevent tax evasion and money laundering in the country’s financial system.
How Can Companies Comply?
The Beneficial Ownership Declaration form is available online and can be submitted along with other required documents at the Register of Companies (ROC) office or through an online application portal. By complying with these new requirements, companies can help ensure a more transparent and compliant financial environment in Fiji.