Financial Crime World

Here is the article in markdown format:

Nauru’s Compliance with Financial Regulations on Track

Nauru has made significant strides in its efforts to comply with international financial regulations. A recent report from the OECD Global Forum rated the country as “largely compliant” with OECD standards.

The Role of the Nauru Revenue Office (NRO)

The NRO plays a crucial role in managing the government’s finances and ensuring compliance with taxation laws. According to NRO officials, the agency has implemented several initiatives aimed at improving tax compliance and reducing non-compliance.

Initiatives for Improved Tax Compliance

  • The Compliance Improvement Strategy (CIS) focuses on identifying taxpayers who pose a risk to revenue and conducting regular audits to ensure compliance with tax laws.
  • Monitoring retailers for price gouging and profiteering, as well as enforcing fuel price controls.

Taxpayers’ Charter

The NRO has developed a Taxpayers’ Charter, outlining its commitment to: + Transparency + Accountability + Fairness in dealings with taxpayers This charter aims to build trust between the agency and the community, encouraging voluntary compliance with tax obligations.

International Partnerships

Nauru is working closely with international partners to implement OECD standards and EU Base Erosion and Profit Shifting Inclusive Framework minimum standards commitments. The country has also received a positive review from the Pacific Financial Technical Assistance Centre (PFTAC), which praised Nauru’s efforts to improve its financial regulatory framework.

Structure of the NRO

The NRO is comprised of four divisions, each playing a critical role in ensuring the effective administration of revenue and taxation laws: + Design and Management + Revenue + Taxpayer Services + Compliance

Recent Changes to Tax Laws

In recent years, Nauru has made significant changes to its tax laws, including the introduction of a new Business Tax Act that broadens the tax base to include foreign income earned by resident persons. This change aims to increase revenue and improve transparency in the country’s financial system.

Conclusion

Nauru’s efforts to comply with international financial regulations are yielding positive results, and the country is well on its way to achieving its goal of becoming a stable, trustworthy, and fiscally responsible government.