FRCA Unveils Risk Differentiation Framework for Segment of Customers
The Fiji Revenue and Customs Authority (FRCA) has introduced a new risk differentiation framework to identify non-compliant trends and behaviors among its large and international customers. The innovative approach uses a graph to illustrate the simple results, making it easy to understand.
Compliance Strategy: Large & International Taxpayers
The key compliance risk for this segment is underreporting, which FRCA attributes to aggressive tax planning and evasion schemes implemented by taxpayers with the help of professional consultants. To address this issue, FRCA proposes legislative changes, relies on external coordination, and emphasizes improving enforcement activities in complex sectors.
Key Compliance Risks
- Registration risk: Low
- Filing risk: Low
- Payment risk: Low
- Underreporting risk: High
Measures to Facilitate Compliance
- Coordinate with Gold Card taxpayers to understand non-compliance
- Distribute targeted education material for foreign workers employed by large taxpayers
- Acquire and exploit new third-party data
Compliance Indicators
- % increase in collections
- % increase in withholding tax collection
- % increase in fringe benefits tax
- % increase in CGT
Workflows
- Registration checks
- Advisory visits
- Limited scope audits
- Comprehensive audits
- Debt collection actions
Capacity Development
- Develop capability to exploit bulk, third-party data
- Obtain MOUs with external stakeholders to acquire key, bulk data
- Create a new public rulings unit
- Acquire training and assistance on managing complex industries
The FRCA is committed to working together with taxpayers to build a “healthy” community. While the approach may face challenges, the authority expects success and is willing to work together to provide world-class service.
Contact Us
For more information or questions, please contact the Fiji Revenue and Customs Authority. Thank you for your attention.