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

 

Tax Administrative Penalties & Offences

Failure to Maintain Proper Records

Administrative penalty of 75% of amount of tax payable in period of knowingly or recklessly failure to keep, maintain or retain accounts, documents and records; or

Administrative penalty of 20% of amount of tax payable in period of any other case of failure to keep, maintain or retain accounts, documents and records.
Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment if knowingly or recklessly fails to keep, maintain or retain accounts, documents and records

Improper Use of Taxpayer Identification Number

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a person who uses a false Tax Identification Number on any tax return or document prescribe or used for the purposes of a tax law.

Tax Offence fine not exceeding FJ$10,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment for a person who fails to apply for cancellation of their Tax Identification Number.

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a person who fraudulently obtains a Tax Identification Number  using false or forged documents.

False or Misleading Statement

Administrative penalty of 75% of amount of tax shortfall in period of tax liability due to a knowingly or recklessly  false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular; or

Administrative penalty of 20% of amount of tax shortfall in period of tax liability due to any other case of  false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular.

The amount of administrative penalty will  increase by 10% points if it is the second application of a false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular; or

The amount of administrative penalty will increase by 25% points if it is the third or subsequent application of a false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular.

The amount of administrative penalty can be reduced by 10% points if the statement is voluntarily disclosed prior to the earlier of the discovery of the tax shortfall or the commencement of an audit of the tax affairs of the person to whom the statement relates.

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for knowingly or recklessly false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular.

Obstruction of Tax Officer

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a person who obstructs a tax officer in the performance of duties under a tax law

Failure to Comply with Administrative Summons

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Failure to Provide Facilities and Assistance for Entry and Search

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Aiding or Abetting a Taxation Offence

A person who aids, abets, assists, incites, or induces another person to commit an offence under a tax law (referred to as the “principal offence”) commits an offence and is liable for the same sanction as imposed for the principal offence.

Former and current officers of FRCS are not permitted to request/receive bribes in connection with the officer’s duties which he/she is not lawfully entitled to receive.

Offences by Tax Officers

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a tax officer /person who directly or indirectly asks/offers for, or takes/gives in connection with any of the officer’s duties, and payment or reward whatsoever, whether pecuniary or otherwise, or promise or security for any such payment or reward, not being a payment or reward that the officer was lawfully entitled to receive.

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a tax officer /person who enters into or acquiesces in any agreement to –

  1. do any act or thing;
  2. abstain from doing any act or thing;
  3. permit or connive in the doing of any act or thing; or
  4. conceals any act or thing

whereby the Government is or may be defrauded of revenue, or that is contrary to the provisions of a tax law or to the proper execution of the officer’s duty.

Print This Page Print This Page

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