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Fiji Time: 1:24 PM on Sunday 26 May

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FIRCA promotes voluntary compliance

Felix Chaudhary
Thursday, October 11, 2012

DON'T make us come after you. This was the message from the Fiji Revenue and Customs Authority to participants at the University of the South Pacific's Faculty of Business and Economics Fiji Economy Update 2012 held in Nadi on Friday.

FRCA's national manager Policy and Research Fazrul Rahman said the emphasis on complete compliance over the past decade resulted in change in legislation to strengthen the issue.

"A series of tax compliances were brought to the Income Tax Act such as new anti-avoidance provision, introduction of departure prohibition order, temporary closure of business and tightening the provisions on garnishee order," Mr Rahman said.

"Now that the 2012 Budget tax policy reform has reduced the tax rates in large magnitude, FRCA is promoting a culture of voluntary compliance."

He said it was important to acknowledge that Fiji's tax regime was very attractive to potential investors despite the fact that it followed a trend of reducing tax of income and VAT increase over the 1997 -2012 period.

"The 2012 Fijian Budget has positioned the country as an attractive tax regime.

"The expansionary fiscal policy in the form of tax cuts in the Budget is achieving the objective of building confidence and raising investment," he explained.