The Fiji Revenue and Customs Service (FRCS) has expressed significant concerns regarding the operation of unregulated overseas student recruitment agencies in the country. According to FRCS officials, these agencies are implicated in questionable financial practices, including potential tax evasion and the exploitation of international students and their families.
During a recent inter-agency stakeholders session organized by the Higher Education Commission Fiji, Karishma Kumar, the FRCS Manager for Post-Assessment and Field Inspection Taxation, highlighted findings from recent investigations into recruitment agencies. These investigations uncovered that some students were reportedly required to make multiple upfront payments before they were able to secure placements for studies abroad.
Kumar detailed instances where full tuition payments for New Zealand institutions, ranging from $17,000 to $20,000, were demanded in advance. She noted the involvement of both local agents and an Australian agency representative, indicating that transactions were largely conducted through mobile money platforms and selected financial institutions within Fiji.
The nature of these transactions raised significant concerns. Kumar pointed out that the way agency fees are remitted offshore, often without the application of appropriate withholding taxes, poses a serious issue. “We are more interested in how much money is coming in. And when the agency fees are sent out, it attracts a collection of withholding taxes,” she explained. It was emphasized that FRCS aims to ensure that all income earned from these operations is declared and accounted for.
In addition to the financial concerns raised, Higher Education Commission Fiji Chair, Steve Chand, noted alarming instances where students arrived overseas without necessary support or arrangements, which left them vulnerable and reliant on goodwill from diaspora communities.
The situation underscores the importance of regulating overseas student recruitment agencies to protect students and ensure compliance with financial obligations. As discussions continue in Fiji, there is hope that collective efforts from education authorities and revenue services will lead to a more secure and transparent process for students seeking to study abroad.
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