Tax Act ‘presents challenges’

THE new Income Tax Act implemented by the Government has presented some challenges to taxpayers, but it has also brought about some positive changes, says PriceWaterhouseCoopers partner Jerome Kado.

PWC yesterday held a one-day seminar for its clients and stakeholders on the issue at the Grand Pacific Hotel where the participants had a chance to hear from the Fiji Revenue and Customs Authority and other organisations on the new law.

Mr Kado said the presentation was meant to update taxpayers, particularly PWC’s clients, on the new tax regime.

He said there was a new Income Tax Act, which touched on certain fringe benefits, and it was an important piece of legislation for businesses and individuals. Mr Kado said there were a number of challenges that would be brought about by the Act, but the taxpayers had a chance to know about the positive parts of the Act.

“There are verifications on some areas that were not so clear in the past. However, there are certain other areas which would bring substantial challenges,” he said.

Mr Kado said one of the issues that was the focus of discussion was the imposition of the 5 per cent provisional tax.

He said previously the provisional tax was 15 per cent and it had been reduced now from 15 to 5 per cent.

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