The Fiji Revenue and Customs Service waived or remitted $109.5 million in penalties during the 2023–2024 financial year, with the authority saying the process is governed by strict internal procedures and approval controls.
In its submission to the Standing Committee on Economic Affairs, FRCS said penalty remissions are guided by Standard Operating Procedures and provisions under the Tax Administration Act.
“Final approval for most penalty remissions is granted at the Manager level, while audit penalty remissions can only be approved by the CEO of FRCS,” the submission stated.
FRCS said the Chief Executive Officer also has powers under the Tax Administration Act to extend lodgement deadlines, which can relieve taxpayers from lodgement penalties.
FRCS said excuses such as being too busy, travelling overseas, staff resignations or being unaware of obligations were not accepted as valid grounds.
The authority also considers mitigating factors such as strong compliance history, ill health and advanced age.
FRCS said penalty waivers are only considered where non-compliance was beyond the taxpayer’s control. Examples listed included serious illness, natural disasters destroying business premises and situations where taxpayers were unable to engage tax agents to meet obligations.
“Circumstances where a warning combined with a reduced penalty is more effective in encouraging future compliance” may also be considered, FRCS stated.
The revenue body said some penalties were also waived due to glitches encountered during the rollout of its digital tax system.
“Once rectified, these penalties are waived to ensure fairness,” the submission said.
While FRCS’s Standard Operating Procedures remain internal documents, the authority said the principles and eligibility criteria for remission are publicly available through taxpayer guidelines and communication channels.
FRCS said the $109.5 million in waived penalties reflected its commitment to fairness, compassion and consistent tax administration while still penalising deliberate non-compliance.
