Fiji has recently joined the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) as its 152nd jurisdiction, marking a significant step in fostering tax transparency and collaboration with the international community. This development allows Fiji to engage in information exchange with 151 other jurisdictions, encompassing all major financial centers and adding to the existing over 8,000 exchange relationships established under the convention.
The MAAC is recognized as the most comprehensive multilateral framework for tax cooperation globally. It facilitates jurisdictions in exchanging information upon request, conducting simultaneous tax examinations, and assisting in tax recovery efforts. During the signing ceremony in Paris on January 15, Fiji’s Minister for Finance, Esrom Immanuel, emphasized the landmark significance of the convention, highlighting potential benefits for the nation.
Minister Immanuel stated that the convention would enhance Fiji’s cooperation with international partners, reinforcing its commitment to fairness and transparency in tax matters. He noted that this development plays a pivotal role in moving Fiji closer to being removed from the European Union’s list of non-cooperative jurisdictions, or the EU Blacklist, which could improve the country’s international reputation and economic partnerships.
Udit Singh, the chief executive officer of the Fiji Revenue and Customs Service (FRCS), viewed joining the MAAC as a critical milestone for the nation. He remarked that it lays the legal groundwork for the implementation of Automatic Exchange of Information (AEOI) and Exchange of Information on Request (EOIR) frameworks aimed at effectively combating tax evasion and avoidance.
Singh also reiterated Fiji’s unwavering commitment to upholding international tax transparency standards and enhancing global cooperation. He expressed the country’s determination to actively contribute to the Global Forum’s objectives of creating a fair and transparent international tax system. Furthermore, he confirmed that the FRCS would collaborate closely with the Global Forum Secretariat and other international entities to ensure compliance and to ultimately increase Fiji’s tax revenue.
Following the signing of the MAAC, Fiji will proceed with the necessary domestic processes to officially become a party to the agreement. The FRCS noted that once ratified, the MAAC would serve as a unified legal structure for information exchange with all involved jurisdictions. This historic step not only signifies Fiji’s commitment to global tax standards but also opens avenues for enhanced economic cooperation and development.
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