Tax D-day – Businesses brace for tax reckoning

Listen to this article:

FRCS chief executive officer Udit Singh. Picture: FILE

BUSINESSES around the country still owing tax to the tax department and who have not taken advantage of the three-month tax amnesty that ends tomorrow are in for a suite of enforcement actions, among them, departure prohibition orders and the likelihood to lose properties.

This comes as the Fiji Revenue and Customs Service (FRCS) clamps down on unpaid taxes, saying it will not extend the amnesty deadline for this year despite protests from the business community that the three- month amnesty period is too short and unrealistic.

“With only a few days remaining, taxpayers are strongly encouraged to take advantage of this opportunity to regularize their tax affairs and benefit from the waiver of penalties,” FRCS posted on its Facebook page on Monday.

“Following the conclusion of the amnesty period, FRCS will initiate full enforcement actions to address outstanding tax filing obligations and liabilities.

“These measures may include: issuance of garnishee orders, petitions for sale of properties, departure prohibition orders, prosecution of non-lodgers and default debtors.”

Concerned business owners have contacted this newspaper airing their frustration over what they believe was an amnesty time window that lacked appreciation for the complexity of financial report auditing.

The issue had also been brought to the attention of FRCS by the Fiji Institute of Chartered Accountants (FICA), who had asked for the deadline to be extended to October 31.

This was met with an emphatic “no” from FRCS.

“Following careful consideration of your request and after discussions with both the FRCS Executive Leadership Team and our Board, we have resolved not to formally extend the amnesty period,”

FRCS chief executive officer Udit Singh wrote in his response dated July 2, 2025, a copy of which was obtained by this newspaper.

“This decision is based on the principle of maintaining structure, predictability, and momentum in our compliance programs.

“As you will appreciate, effective tax administration requires the right balance between incentivising voluntary compliance and maintaining integrity in the system.”

FICA president Sharvek Naidu told The Fiji Times their request for an extension was “in response to increasing feedback from its members and the wider public.”

“FICA’s request is based on professional capacity constraints, the complexity of historical cases and alignment with international best practices,” Mr Naidu said.

“While FRCS has acknowledged FICA’s position and confirmed that case-by-case arrangements may be considered under existing provisions, FICA has respectfully submitted a further letter seeking reconsideration of a formal extension to 31 October 2025.

“FICA remains committed to supporting national efforts in fostering a fair and inclusive tax system and looks forward to continued collaboration with FRCS in the interest of enhancing voluntary compliance and economic resilience,” Mr Naidu said.