FRCS identifies about 80 million in unpaid VAT through a new “mixing and matching” approach, signaling a strengthened push for tax compliance in Fiji.
Under the new strategy, the Fiji Revenue and Customs Service (FRCS) compared VAT inputs and outputs to spot inconsistencies, a technique described by Shavindra Nath, the Director of Corporate Services, as part of a broader revamp to boost compliance and revenue recovery. Nath said the exercise uncovered roughly 80 million dollars in non-payments, leading FRCS to engage affected taxpayers directly and pursue appropriate actions.
But the move is not without its challenges. Standing Committee on Public Accounts member Hem Chand raised concerns about reaching some taxpayers, noting outdated or invalid contact details as a hurdle. In reply, FRCS’s Director of Taxation, Momina Beg, outlined a multi-pronged response: field teams and education officers are deployed nationwide to conduct inspections and enforcement when needed, not only in Suva but at outer ports as well. Beg also indicated that FRCS plans to install information portals and service kiosks in partnership with district offices to help taxpayers in remote areas update records, file returns, and meet tax obligations more easily.
This development sits within a broader FRCS push toward Compliance Improvement and taxpayer education. The agency has been moving from a purely reactive audit model toward a more proactive, supportive approach, with efforts to categorize taxpayers and tailor assistance or enforcement based on risk. The broader strategy emphasizes simplifying compliance, expanding outreach, and strengthening sector-specific oversight, including VAT, imports and exports, and services across Large Taxpayers, agriculture, tourism, and the arts. The initiative is intended to foster a fairer tax system and bolster public trust while enhancing revenue collection for essential public services.
Logical takeaway and added context:
– The 80 million VAT finding reflects FRCS’s intensified focus on VAT compliance as part of its Compliance Improvement Strategy, which aims to improve voluntary compliance through education and targeted enforcement.
– Outreach challenges due to contact data gaps are being addressed through on-the-ground field work and local service points, which should help close records gaps and improve lodgment and payment rates.
– The combination of data-driven compliance (mixing and matching) with expanded education and service access points can lead to higher voluntary compliance and more timely revenue, aligning with FRCS’s longer-term goal of a transparent, accountable tax system.
Summary: FRCS’s discovery of roughly 80 million in unpaid VAT via input-output matching highlights a strengthened compliance drive, backed by field outreach and new service portals to improve taxpayer record accuracy and filing. If sustained, this approach could improve tax collection, support public services, and build a more trust-based tax environment in Fiji.
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