REVELATIONS have emerged that some taxpayers have been making major tax omissions to the Fiji Revenue and Customs Authority.
And these omissions, which are on the fringe benefit tax (FBT), are estimated to be in the millions, FRCA CEO Jitoko Tikolevu said in a statement yesterday.
The findings showing inconsistencies in FBT tax payments followed a recent tax audit carried out by the authority.
Mr Tikolevu said the authority would now offer a grace period until November 11 this year, within which companies would be allowed to settle any inconsistencies.
"It has come to the attention of the authority that a majority of employers who are lodging VAT returns do not make the mandatory FBT adjustments," he said.
"These are very serious omissions and are to be immediately corrected.
"When people don't pay the right taxes, they are denying the State coffers and more importantly the provision of public services, which all citizens benefit from.
"Full statutory penalties will be applied to all employers who do not comply by 11th November 2013.
"We have reduced tax rates significantly in recent years, we have improved our processes to facilitate businesses and it is only right that our taxpayers exercise good faith and comply with the laws."
Penalties for such acts include fines and imprisonment.
In the first six months of this year, revenue collected from FBT was $8.2m, an increase from the $2.9m recorded for the same period last year. Last year, the authority collected $9.36m in FBT.