Need for proper risk management application

IN this modern era, proper risk management application is vital in all facets of society and particularly the various sectors of the economy.

Realising this, regional and local tax administrators recently converge to discuss and share ideas to strengthen tax compliance through risk management and profiling.

This included tax administrators from Samoa, Tonga, Vanuatu and Papua New Guinea held at the Fiji Revenue and Customs Service complex in Nasese, Suva.

FRCS chief executive officer Visvanath Das, while opening the workshop highlighted the need for proper risk management application, particularly in the area of tax administration.

“In Fiji we have developed a compliance improvement strategy which identifies industries and taxpayer groups under the radar and this is done through a risk profiling and assessment process,” he said.

“Thereafter identifying various mitigation to address the non-compliance and the risks.

“It outlines specific strategies for taxpayer services, large & international, medium, small, construction, real estate and supermarkets to commit themselves to their tax obligations, and enhance voluntary compliance.”

Mr Das said several factors had substantially increased revenue risks and the complexity and volume of service, audit and other compliance interventions by revenue authorities.

This included the growth in international trade, supported by e-commerce developments, changes in employment patterns and growth in the numbers of contractors, innovations in business structures and financial products, and the commoditisation of tax schemes.

“Therefore, tax administration should have in place strategies and structures to ensure that non-compliance is minimised,” Mr Das said.

The workshop was organised by the Pacific Financial Technical Assistance Centre (PFTAC) and the Pacific Islands Tax Administrators Association (PITAA).