Up to $100 million in net revenue and potentially up to $700-$800m in gross revenues are at stake with some 3000 identified VAT-registered taxpayers now being pursued for failing to meet their VAT lodgement obligations.
These registered organisations comprise sole traders and companies, a few are large corporations, and it is also a mixture of local and foreign-owned companies.
In late February, the Fiji Revenue and Customs Service (FRCS) published the TIN identifications of about 3000 registered taxpayers it was pursuing for VAT non-compliance.
It had also indicated it would commence enforcement actions without further notice, such as garnishee of bank accounts and bankruptcy proceedings.
FRCS chief executive officer Udit Singh said those were enforcement measures that would be activated unless monies owed to Government were returned.
“That is trust monies for the Government and they have not returned that to the national coffers. It’s a baseline requirement that if you are charging VAT of if you are taking PAYE (pay as you earn) from your workers, that money needs to be returned to the Government; and we will do the right thing by the Government of the day,” Mr Singh told this newspaper.
“We are appealing to these people to pay those monies back to the Government because that is not their money.
“They’ve collected it on behalf of the Government in terms of VAT and a few other trust taxes, so they need to respond and we need their compliance.”
In its paid statement last month, the FRCS stated the enforcement actions would commence without notice because 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 the identified taxpayers were collecting VAT and issuing VIP (VAT-inclusive sales) invoices, but were either not lodging their VAT returns or incorrectly submitting NIL returns.
In its recent analysis during its VAT compliance campaign, it had identified that 2489 VAT-registered taxpayers had failed to lodge VAT returns (non-lodgers) despite recording VIP; and that 1201 had failed to file nil VAT returns despite recording VIP.
It had said that continued non-compliance undermined the integrity of Fiji’s tax system and deprived 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
– debt 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.
The FRCS has 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.
