Audit & Compliance

Introduction

Structure & Function

Initiatives

Audit Definition, Referral, Selection, Type, Period, Record Keeping & Access

Tax Administrative Penalties & Offences

Audit Process

Objection Process

Tax Tribunal Process

 

Audit Definition

A tax audit is the review of taxpayers’ (business and/or personal) financial affairs and other reporting requirements to determine if tax is/what should be correctly assessed, reported and fulfillment of other necessary FRCS obligations.

Tax audit work performed on tax related accounts, documents, records or data storage collected or sent for review at the FRCS office is a ‘desk audit’.

A ‘field audit’ is a site visit to any premises (business and/or personal) to conduct tax audit work.

Audit Referral

  • Internally i.e. FRCS officers
  • Externally i.e. International & Domestic  Government/Non -Government Agencies, Non- Government & Private Sector Organizations/Entities and General Public

Audit Selection

  • Management determine priorities, direct, assign, monitor and evaluate the outcome of audits.
  • Taxpayers can be selected for audit repeatedly and for single/multiple tax types.

Audit Type

  • Single issue audit examination focus is on one item of potential non-compliance of a taxpayer’s return.  The audit typically takes less time to perform and is used to review other taxpayers’ involved in similar schemes of non-compliance.
  • Limited scope audit examination focus is in relation to specific issues of key potential non-compliance of a tax return and/or particular tax scheme arrangement of a taxpayer.  The audit approach also allows greater taxpayer coverage due to the less need of time and can be used to launch a campaign with support of media and press attention.
  • Full/Comprehensive or Complete audit examination focus encompasses all information relevant to determine the complete & correct tax for a tax return as a whole.  The broad scope approach requires considerable time & costs so may be carried out randomly usually to gather data on the extent, nature and specific features of tax compliance risks for internal research, pilot programme and project purposes.

Audit Period

  •  This will be proportionate with the potential risk criteria and materiality of the tax assessment & collectability consequence versus the cost to FRCS.
  • The audit focus will be a single or number of taxable period of months or years (calendar/fiscal).

Audit Record Keeping

All tax related accounts, documents and records must be maintained in Fiji, in English having a retention period of not less than 7 years after the end of the tax period to which they relate.

A person having custody of accounts, documents and records can dispose them due to liquidation or cessation of business but only after 3 months registered letter advice of proposal to the CEO.

Prior to the expiry of the 7 year retention period,   a taxpayer can make a request in writing to the CEO who may provide a written response of approval for disposal of accounts, documents and records.

Audit Access

Physical (Search & Entry) Access

  • allowable only to FRCS officers who produce the CEO’s written authority to the owner or lawful occupier of the premises, place or property; CEO’s authority is in the form of a warrant card specifying the legislative authority and photo identification of the FRCS officer.
  • at all times and with or without notice;
  • to full and free access to any premises, place, property, accounts, documents, records, or data storage device;
  • make an extract, copy, or seize accounts, documents, records, or data storage device;
  • is not prohibited by law relating to privilege or the public interest or any contractual duty of confidentiality.

Written Access

  • by Administrative Summons notice;
  • to any person;
  • to furnish any information;
  • to produce any accounts, documents, records; to attend & provide evidence of any person;
  • is not prohibited by law relating to privilege or the public interest or any contractual duty of confidentiality.

International Access

Overseas Information retrieval for a multinational enterprises (MNE) parent company or foreign subsidiary is subject to tax treaty protocols referred to as a Double Taxation Agreement (DTA) between Fiji and another country.

 

 

 

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HEAD OFFICE LOCATION

CONTACT DETAILS

Revenue & Customs Service Complex,
Lot 1 Corner of Queen Elizabeth Drive
& Ratu Sukuna Road,
Nasese,
Suva.
Phone: (+679) 3243000
Fax: (+679) 3315537
Email: info@frcs.org.fj