Tax Refund Claims
- How long does it take to process income tax returns?
PAYE final tax was implemented on 1/1/13, therefore there would be very minimal Form S returns lodged. Commissioner’s assessments will be sent to individuals once all EMSs have been lodged and reconciled with PAYE
- I still haven’t lodged my salary & wage earner return for 2012 and prior years and I am expecting a tax refund. Will FRCS release the refund once my return is processed? FRCS will only release refunds within three (3) years from the end of year of assessment. However, the refund will not be released if you have any outstanding tax matters.If no claim is made within three (3) years from the end of year of assessment, the refund is forfeited. Effective from 1/1/2013 individuals will not need to lodge a return as Commissioner’s assessment
will be issued to those whose PAYE has been over under deducted
- How do you deal with the case where a taxpayer dies and the spouse wishes to claim for the taxpayer’s tax refund?
The spouse will have to submit a covering letter, probate statement, the death, marriage and birth certificates once Commissioner’s assessment is received.
- What usually holds up the processing of income tax returns for taxpayers who receive redundancy packages?
At times taxpayers and employers do not give the full details on the redundancy package which only delays the assessment and processing of the taxpayer’s return. Redundancy payments are tax-free up to FJ$15,000 and subject to a tax rate of 15% on the balance over FJ$15,000. The payments have to be declared by the taxpayer in his or her income tax return.
To allow FRCS to process the tax return of an employee receiving a redundancy package, the employer has to provide the following details:
- nature of the payment.
- names of the recipients and other relevant details such as age, date of appointment, number of years’ service, etc.
- correspondence(s) leading up to the decision to make the payment.
- computation of final salary including the lump sum payment for each employee.
- Can any of my refunds be offset against my personal tax liabilities?
Yes, your VAT and Income Tax refunds can be offset against your VAT and income tax liabilities and vice versa.