Fiji has initiated a focused effort to address its underground economy, driven by the launch of a dedicated tax crime task force within the national tax office. Announced by Deputy Prime Minister and Minister of Finance Professor Biman Prasad, this initiative aims to investigate unreported economic activities that have largely evaded taxation.
Professor Prasad emphasized that the task force is not intended as a punitive measure but rather a means to ensure that all businesses contribute their fair share in taxes. He acknowledged that the majority of Fijian businesses comply with tax obligations, while highlighting the need to address the few that engage in tax evasion, which he views as harmful to the country’s economic health.
The scale of untaxed money circulating in Fiji is still poorly understood, and the task force is expected to provide a clearer picture of these economic discrepancies. Udit Singh, the chief executive officer of the Fiji Revenue and Customs Service (FRCS), indicated that a framework to tackle these issues will be developed over the next two months, in collaboration with international partners, including the Australian Tax Office.
The task force’s efforts will focus on understanding the shadow economy, unexplained wealth, and undisclosed finances. Nitin Gandhi, the chair of the task force and a well-respected chartered accountant, underscored the urgent need to confront the challenges posed by tax avoidance and evasion, which threaten the integrity and stability of Fiji’s tax system.
Overall, this initiative reflects Fiji’s commitment to enhancing tax compliance and ensuring that all sectors contribute equitably to the nation’s economy. By addressing these issues proactively, Fiji is taking significant steps toward strengthening its financial integrity and fostering a fairer economic environment for all citizens.
This move can be seen as a hopeful effort towards creating a more transparent and equitable fiscal landscape in Fiji, promoting growth and stability in the long run.
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