Fiji is making significant efforts to address the challenges that led to its placement on the European Union’s (EU) tax blacklist in 2019. The Chief of Staff for the Fiji Revenue and Customs Service (FRCS), Shavindra Nath, emphasized the steps being taken to ensure compliance with international tax standards and improve the country’s financial systems. During a presentation to the Standing Committee on Foreign Affairs and Defence regarding the 2020-2022 annual report, Nath highlighted that Fiji is blacklisted under three categories related to tax transparency, which necessitates the establishment of exchange of information platforms among jurisdictions.
Nath expressed optimism about Fiji’s future, indicating that with support from organizations like the Australian Development Bank and the EU, the nation aims to resolve these issues within the next 12 to 18 months. Since being initially placed on the EU’s gray list in 2018, Fiji’s government has taken comprehensive steps towards tax compliance, particularly after the previous administration’s tax incentive package failed to meet EU standards.
This proactive approach is crucial as the classification has significant implications for Fiji’s trade and investment opportunities with European nations. The ongoing reforms reflect Fiji’s commitment to enhancing its financial reputation, which, if successful, could facilitate increased foreign investments and strengthen economic prospects.
The determination to rectify the issues underscores a positive outlook for Fiji, which continues its pursuit of a more transparent and compliant financial framework, ultimately aiming to foster better international relationships and economic resilience.
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