The Fiji Revenue and Customs Service (FRCS) has been ordered to return a whopping $26million to a foreign company, Cayman Fiji Holdings Ltd, the Tax Court of Fiji has ruled.
Fiji Cayman Holdings had sold its shares in its fully owned subsidiary – Farleigh Ltd (Farleigh) that operated Sheraton Fiji Resort, Denarau Golf and Racquet Club, Associated Development land and Westin Island Resort and Spa to the Fiji National Provident Fund (FNPF) in 2018 and had claimed Capital Gains Tax exemption from FRCS.
However, FRCS did not grant an exemption and assessed that Cayman Fiji Holdings should pay $25,977,261.31 after an assessment.
“The respondent (FRCS) has not established that the transaction or the claim for exemption was a tax avoidance scheme,”‘ said Justice Javed Mansoor in his October 9 ruling.
“The applicant’s (Fiji Cayman Holdings) claim for exemption of capital gains tax was in accordance with section 67 (1) (d) of the Act as it then stood. The transaction was for the sale of shares and debt.”
