Garnishee of bank accounts and bankruptcy proceedings are among a list of enforcement actions the Fiji Revenue and Customs Service (FRCS) will be pursuing against more than 3000 VAT-registered taxpayers identified for VAT non-compliance.
The FRCS will now commence those enforcement actions without further notice. According to FRCS, despite multiple public notices, the 2025 tax amnesty program and the extended timeframes provided during that period, VAT non-compliance continued to persist.
It stated that it continued to identify taxpayers who had failed to meet their VAT lodgement obligations.
“These taxpayers are collecting VAT and issuing VIP (VAT-inclusive sales) invoices, yet they are either not lodging their VAT returns or incorrectly submitting NIL returns,” the FRCS stated.
It warns that VAT collected and not remitted back to the FRCS is a serious offence. In its recent analysis during its VAT compliance campaign, the FRCS has identified that 2489 VAT-registered taxpayers have failed to lodge VAT returns (non-lodgers) despite recording VIP. It also found that 1201 VAT-registered taxpayers had failed to file nil VAT returns despite recording VIP.
“This continued non-compliance undermines the integrity of Fiji’s tax system and deprives government of critical revenue.”
Enforcement actions include:
- raising default assessments for all outstanding VAT periods;
- imposition of penalties under the Tax Administration Act 2009;
- non-issuance or cancellation of Tax Compliance Certificate; and
- ndebt recovery actions, including but not limited to garnishee of bank accounts, charge placed on property; bankruptcy proceedings for unpaid debts; and prosecution of non-compliant taxpayers. It has also advised non-compliant taxpayers to lodge all outstanding VAT returns or amend Nil VAT returns via the Taxpayer Online Services (TPOS); declare correct VAT inclusive sales and VAT payable; pay outstanding VAT and penalties; and seek FRCS assistance.
According to the FRCS, all outstanding returns and payments are to be lodged and paid on or before February 28, and that arrears and arrangements in place are due for this month only. It has reminded all taxpayers to meet their tax obligations in full to avoid penalties, enforcement actions or legal proceedings under Fiji’s tax laws.
It added that it may consider a Time To Pay Arrangement (TTPA) for genuine cases of non-payment provided prior arrangements are organised.
