Fiji is taking firm action to address its underground economy with the establishment of a new tax crime task force within the national tax office. This initiative, revealed by Deputy Prime Minister and Minister of Finance Prof. Biman Prasad, aims to investigate the largely invisible and untaxed economic activities that have been impacting the country’s financial landscape.
Prof. Prasad emphasized that the task force’s mission is not to unfairly target honest taxpayers but to ensure that everyone meets their tax obligations. He acknowledged that the vast majority of Fijians and businesses comply with tax regulations and contribute positively to the economy. However, he pointed out the detrimental effects of tax evasion by a minority, stressing the importance of addressing these issues to preserve economic integrity.
The true scale of unreported income in Fiji remains uncertain, and the task force is anticipated to provide clarity on this matter. Udit Singh, the chief executive officer of the Fiji Revenue and Customs Service (FRCS), highlighted the task force’s objective to establish a framework within two months to tackle tax compliance, the shadow economy, and unreported wealth. Collaboration with international agencies, including the Australian Tax Office, will also support these efforts.
Nitin Gandhi, the chair of the task force, noted the increasing challenges posed by tax avoidance and evasion, particularly from multinational enterprises, and the need to protect the integrity of the tax system in Fiji.
This proactive approach demonstrates the government’s commitment to ensuring a fair economic environment, potentially leading to increased revenue for national development. By tackling the underground economy, Fiji could not only enhance its fiscal health but also foster a culture of transparency and accountability, benefiting all citizens in the long run.
In summary, Fiji’s formation of a tax crime task force aims to tackle the underground economy and enhance tax compliance. This initiative is expected to support honest taxpayers while mitigating the harmful effects of tax evasion, promoting overall economic stability and development in the nation.
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