Fiji Off EU Tax Blacklist After Reform Drive

The Chief Executive of Fiji Revenue and Customs Service, Udit Singh, has openly acknowledged that the country missed an opportunity to address concerns raised by the European Union (EU) back in 2017. This oversight ultimately resulted in Fiji being blacklisted in 2019 due to issues related to tax transparency and harmful tax practices.

Singh stated that the EU had provided Fiji with a 12-month window to respond to its concerns, during which necessary reforms were to be implemented. Unfortunately, Fiji failed to act during this crucial period. “I think the fact remains that we did not respond. We did not respond to the request from the EU to make those changes,” Singh remarked, emphasizing a lack of will to initiate the required reforms at that time.

As a result of this inaction, Fiji found itself classified as a non-cooperative jurisdiction for tax purposes, which posed significant risks to its reputation and could lead to financial repercussions.

In recent years, however, there has been a positive shift within the government and the Fiji Revenue and Customs Service board towards addressing these issues. Singh noted that efforts made in the last three to four years have been focused on securing Fiji’s removal from the EU blacklist. The successful removal indicates that Fiji is now recognized as compliant with international tax governance and transparency standards.

This status not only lessens the scrutiny over financial transactions involving Fiji but also enhances investor confidence and improves the country’s position in global trade and financial cooperation. Prior to this change, the blacklist raised alarms among development partners and potential investors, as jurisdictions listed by the EU often face stricter due diligence requirements and a tarnished reputation.

Moving forward, officials remain committed to upholding compliance measures to ensure that Fiji maintains its positive standing and avoids any return to the previous state of heightened monitoring. This proactive approach signals a hopeful future for Fiji’s international tax relations and economic partnerships.