Tax Penalties and Offences

Failure to Maintain Proper Records

Administrative penalty of 75% of amount of tax payable in period of knowingly or recklessly failure to keep, maintain or retain accounts, documents and records; or Administrative penalty of 25% of amount of tax payable in period of any other case of failure to keep, maintain or retain accounts, documents and records.

Tax Offence fine not exceeding FJ$5,000 or to imprisonment for a term not exceeding 6 months or both a fine and imprisonment if knowingly or recklessly fails to keep, maintain or retain accounts, documents and records

Improper Use of Taxpayer Identification Number

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a person who uses a false Tax Identification Number on any tax return or document prescribe or used for the purposes of a tax law.

Tax Offence fine not exceeding FJ$10,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment for a person who fails to apply for cancellation of their Tax Identification Number.

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a person who fraudulently obtains a Tax Identification Number  using false or forged documents.

False or Misleading Statement

Administrative penalty of 75% of amount of tax shortfall in period of tax liability due to a knowingly or recklessly  false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular; or

Administrative penalty of 25% of amount of tax shortfall in period of tax liability due to any other case of  false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular.

The amount of administrative penalty will  increase by 10% points if it is the second application of a false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular; or

The amount of administrative penalty will increase by 25% points if it is the third or subsequent application of a false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular.

The amount of administrative penalty can be reduced by 10% points if the statement is voluntarily disclosed prior to the earlier of the discovery of the tax shortfall or the commencement of an audit of the tax affairs of the person to whom the statement relates.

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for knowingly or recklessly false or misleading statement (written/oral) in a material particular or omission of any matter or thing without which the statement is false or misleading in a material particular.

Obstruction of Tax Officer

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a person who obstructs a tax officer in the performance of duties under a tax law

Failure to Comply with Administrative Summons

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Failure to Provide Facilities and Assistance for Entry and Search

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Aiding or Abetting a Taxation Offence

A person who aids, abets, assists, incites, or induces another person to commit an offence under a tax law (referred to as the “principal offence”) commits an offence and is liable for the same sanction as imposed for the principal offence.

Former and current officers of FRCA are not permitted to request/receive bribes in connection with the officer’s duties which he/she is not lawfully entitled to receive.

Offences by Tax Officers

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a tax officer /person who directly or indirectly asks/offers for, or takes/gives in connection with any of the officer’s duties, and payment or reward whatsoever, whether pecuniary or otherwise, or promise or security for any such payment or reward, not being a payment or reward that the officer was lawfully entitled to receive.

Tax Offence fine not exceeding FJ$25,000 or to imprisonment for a term not exceeding 24 months or both a fine and imprisonment for a tax officer /person who enters into or acquiesces in any agreement to –

  1. do any act or thing;
  2. abstain from doing any act or thing;
  3. permit or connive in the doing of any act or thing; or
  4. conceals any act or thing

whereby the Government is or may be defrauded of revenue, or that is contrary to the provisions of a tax law or to the proper execution of the officer’s duty .

Failure to File a Tax Return or Lodge Other Document

Administrative penalty of 20% of the amount of tax payable under the return for failure to file a tax return under which tax is payable; and Administrative penalty of 5% of the amount of tax payable under the return for each month of default; or Administrative penalty of FJ$1 for each day of default in any other case; or Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Failure to Pay Tax By the Due Date

Administrative penalty of 25% of the amount of unpaid tax for failure to pay tax by the due date including extension of time and instalment for payments; and Administrative penalty of 5% of the amount of tax payable for each month of default

Breach of Possession Agreement

Administrative penalty of 50% of the unpaid tax specified in the possession agreement Liquidator’s Failure to Comply Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Failure to Comply with a Garnishee Order

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Failure to Comply with a Temporary Closure of Business Order

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Failure to Comply with Non Divulgence or Disclosure of Electronic Tax Return or Other Document Contents

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Failure to Comply with a Tax Charge on Property

Tax Offence fine not exceeding FJ$15,000 or to imprisonment for a term not exceeding 12 months or both a fine and imprisonment

Company Advance Tax

A company is required to make four (4) advance payments of tax, with effect from 1 January, 2012:

  • 30% to be paid not later than 30 June of current fiscal year.
  • 30% to be paid not later than 30 September of current fiscal year.
  • 30% to be paid not later than 31 December of current fiscal year.
  • 10% to be paid by the end of February of the following fiscal year.  When an assessment is issued prior to an advance company tax installment becoming due, the amount of any liability will need to be paid by the due date specified in the Notice of Assessment issued under section 55 of the Income Tax Act.
  • If the amount of company advance tax paid is less than the actual tax, the company shall be liable to pay an additional tax equal to 40% of the difference.

Insufficient Advance Payment Penalty Calculation

Example

Company X has paid FJ$2000 advance tax for 2012. Upon assessment, the tax payable is FJ$3000 for same year. Therefore the company has short paid the 2012 advance tax by FJ$1000.

Hence In sufficient Advance Payment Penalty

40% * ($3000-$2000) = FJ$400.00
Note

For income year 2011 and before the advance payment of tax by every company to the Chief Executive Officer may continue under the percentage and installment payment of tax applied before the commencement of this Decree.

The advance payment will be allowed as a credit against the tax due on assessment.

Print This Page Print This Page

HEAD OFFICE LOCATION

CONTACT DETAILS

Revenue & Customs Services Complex,
Lot 1 Corner of Queen Elizabeth Drive
& Ratu Sukuna Road,
Nasese,
Suva.
Phone: (+679) 3243000
Fax: (679) 3315537
Email: info@frca.org.fj