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Non-Compliance and Abuse leads to Termination from FRCS Gold Card Membership Program

17th August, 2018

The Revenue and Customs has expelled a renowned automotive company from its Gold Card Services Program for abuse and non-compliance to Customs laws on numerous occasions.

The Company breached Section 137 of the Customs Act of 1986 whereby the Company failed to adjust the price of vehicle parts to reflect the import duty reduction granted by the Government to make this affordable for Fijians. The duty reductions were not passed down to consumers.

“The Gold Card Initiative is based on high levels of trust and partnership towards voluntary compliance with rewards including priority facilitation, service and associated benefits. It is, therefore, imperative that Gold Card members adhere to and operate within the respective legislative framework at all times. Gold Card members must be role models for all taxpayers”, Chief Executive Officer Mr. Visvanath Das said.

Audit and Investigations into the business affairs of the company brought to light 2 instances of abuse of duty concessions wherein duty concessions were applied but the product delivered to a non-concessionaire. On another two occasions, duty reductions were not reflected in the pricing of the products thus attracting fines of $100,000. There were 3 further separate instances of tariff misclassification to minimize duty liability.

“We work very closely with our taxpayers providing support and guidance on issues for voluntary compliance.  However, we noted in this instance that the Company failed to implement mitigating measures to address recurring offences. We have room for technical and legislative interpretational matters to be amicably resolved. However, we have zero-tolerance for violation of straightforward and simple compliance matters’’, Mr. Das stressed.

“We will continue to work with this company to assist them to become compliant again. It would be a happy day for the Service if this company in time to come regains its Gold Card status,” expressed Das.

 

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