Fiji’s Tax Compliance Crisis: What You Need to Know!

Real-time data from the Fijian tax office has shown a concerning trend, revealing that approximately 38% of taxpayers registered to pay Capital Gains Tax (CGT) failed to file their returns in February 2025. The Fiji Revenue and Customs Service (FRCS) disclosed that out of an anticipated 16,268 CGT returns, only 10,107 were submitted.

In response to these compliance challenges, the FRCS recently held its first forum tailored for legal professionals. This event centered on issues of tax compliance and customer advocacy, specifically focusing on CGT. During the forum, FRCS Director of Taxation, Momina Beg, outlined enhanced customer engagement strategies aimed at improving the overall taxpayer experience. She indicated that the organization is responding to taxpayer feedback by refining its processes on the Taxpayer Online Service (TPOS) and increasing resources such as valuers and educational materials related to CGT.

FRCS Chief Executive Officer, Udit Singh, expressed the crucial role that legal services play for most taxpayers and emphasized the importance of fostering a productive partnership between FRCS and the legal community. This collaboration is intended to build taxpayer confidence, uphold fairness and transparency, and protect taxpayer rights.

Similarly, the agency is engaged in broader initiatives to enhance tax compliance across different sectors, underscoring the establishment of the Tax Compliance Taskforce in collaboration with the Ministry of Finance. This proactive taskforce focuses on combatting tax evasion and improving revenue collection, reflecting the government’s commitment to reinforcing the integrity of Fiji’s tax system.

As Fiji navigates these challenges, the implementation of such collaborative frameworks heralds a hopeful future. By encouraging compliance and transparency, these initiatives have the potential to foster a tax environment where all citizens contribute fairly, ultimately benefiting the economy and public services. This commitment to rectify non-compliance and improve taxpayer relations speaks to a progressive approach to governance and economic responsibility in Fiji.