SOME of Fiji’s tax practices before its 2019 EU blacklist favored foreign companies over local businesses.
This was shared by Fiji Revenue and Customs Service chief executive Udit Singh, who said the policies created an uneven playing field for investors.
Mr Singh said while it is difficult to quantify precisely, certain tax practices at the time did not favour local companies and, in some cases, conflicted with international standards such as World Trade Organization (WTO) regulations.
“Some of it were against some of the WTO regulations. It was not a level playing field for local companies versus overseas companies,” he said.
He also highlighted harmful tax practices around headquarters incentives, which effectively encouraged international companies to establish their headquarters in Fiji for certain benefits.
“So we were effectively inviting international companies to have their headquarters here for certain incentives. And so what we’re saying is that — that was not fair.
“Really what we were wanting to do according to these rules is to have a level playing field around the world.”
When asked if it was possible to quantify how much investment Fiji may have lost due to these unfair tax practices, Mr Singh said it was difficult to say.
He said investment decisions are made in boardrooms worldwide, guided by risk and legal assessments, and the EU blacklist was a key factor companies considered.
“Certainly the EU blacklist is a powerful mechanism for companies to make decisions.”
Mr Singh said the EU blacklist no longer poses an impediment to investment, and Fiji now has tax agreements with 150 countries, sending a positive signal to potential investors.
