Fiji Revenue Service strengthens monitoring of unexplained wealth

The Fiji Revenue and Customs Service (FRCS) is intensifying its efforts to monitor unexplained wealth by introducing a new asset declaration framework. This initiative is set to take effect from the upcoming fiscal year, aiming to strengthen the agency's oversight of taxpayers' financial dealings.

Concerns regarding the monitoring of unexplained wealth were discussed during the presentation of the FRCS 2024–25 Annual Report to the Standing Committee on Economic Affairs. Shavindra Nath, Director of Corporate Services at FRCS, explained that the new framework will serve as an additional tool for scrutinizing taxpayers' assets and financial standing. He emphasized that existing tax laws already empower FRCS to question assets that appear inconsistent with a taxpayer's declared income or financial capacity.

"The onus is on the taxpayer to tell us how that asset was obtained. If not, then there will be certain assumptions, of course, after a lot of checks and balances," Nath stated. He further elaborated that if an audit reveals that a taxpayer's accumulated assets or profits do not match their reported earnings, the taxpayer must provide a clear explanation for how those assets were acquired.

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The onus is on the taxpayer to tell us how that asset was obtained. If not, then there will be certain assumptions, of course, after a lot of checks and balances.

FRCS Chief Executive Udit Singh announced that the organization is actively establishing a specialized unit dedicated to examining unexplained wealth. "That means that if you’re a sole trader, you’ll need to fill in those forms for your assets, and you’ll have to explain where and how those assets were derived from your income and whether you have paid tax on that income," Singh said.

These new measures are designed to bolster FRCS's capability to identify and investigate wealth that cannot be adequately substantiated through legitimate income sources. The agency aims to ensure greater transparency and compliance within the tax system by requiring individuals to account for their assets.

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That means that if you’re a sole trader, you’ll need to fill in those forms for your assets, and you’ll have to explain where and how those assets were derived from your income and whether you have paid tax on that income.