The Fiji Revenue and Customs Service (FRCS) has recently issued a public notice to dispel misunderstandings surrounding the mandatory Taxpayer Identification Number (TIN) requirement for mobile wallet accounts. As confusion has arisen regarding the application of penalties and imprisonment related to this requirement, FRCS has emphasized the specific provisions of the Tax Administration Act.
The authority clarified that penalties outlined in Section 34A(2) of the Act are applicable solely to business taxpayers, aligning with existing rules concerning tax non-compliance. Importantly, these regulations do not extend to individuals or personal users of mobile wallet services. FRCS explicitly stated that individual consumers are not at risk of incurring fines up to $25,000 or facing up to 10 years of imprisonment under this legislative provision.
Additionally, the FRCS addressed concerns that the requirement for a TIN was a tactic to generate revenue, affirming that the directive does not impose any new taxes. Instead, the TIN requirement serves as a compliance and risk management measure aimed at enhancing taxpayer profiling, detecting potential tax evasion, and bolstering national anti-money laundering initiatives. Notably, similar identification requirements are already in place within the commercial banking sector.
FRCS encouraged the public to seek information through official communication channels and reiterated its dedication to ensuring clear and transparent communication with the public. This initiative highlights FRCS’s commitment to promoting compliance and safeguarding the financial integrity of the nation.
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