$350,000 Reward

Another whistleblower helps FRCS recover $6 million in tax

The Fiji Revenue and Customs Service (FRCS) board will again reward another whistleblower following the successful recovery of millions of dollars in tax. The Board has approved a $350,000 reward to the whistleblower who provided them valid information that led to the recovery of $6 million in tax (excluding penalties).

Confirming this to the Fiji

Sun in a release yesterday, FRCS chief executive officer Vishvanath Das said this had taken the overall whistleblower pay out to $0.86 million, yielding total tax and penalty collections of $28m since the introduction of the whistleblower policy in 2014. The taxpayer in question is again a supermarket that has a number of stores around the country.

Given the gravity of the offence committed, Mr Das said FRCS applied maximum penalties as it involved trust funds – the Value Added Tax. The total tax bill, in this instance, was $12m. “The whistleblower had informed FRCS of serious financial statement fraud committed by this supermarket to

understate income tax and Value Added Tax (VAT),” Mr Das said.

“A systemic tax evasion strategy was executed by this supermarket to defraud

the State with the legitimate revenue. “The tax audit, which among other measures involved carrying out of a raid and independent third-party information verification, found that the income statement and balance sheet of the company were manipulated so that taxes were evaded. “The supermarket, over the years, inflated trade creditors amounts, did not account for certain

receipts other than direct supermarket sales, purchased properties in family names using company funds, overclaimed zero rated sales, undeclared incomes from other parts of business such as milk bar etc and engaged in general non-compliance behaviour.”

Mr Das is again warning to all taxpayers engaged in tax fraud that the full brunt of tax laws would be applied, which includes

prosecution and seeking jail terms.

He said the Fijian Government had significantly reformed the taxation system that provided a very low tax burden and there was no incentive whatsoever to evade or avoid taxes.

Tax laws, in recent times, have been modernised to seriously deal with any non-compliance behaviour. “Let me make it very clear. Don’t even try defrauding, it’s not worth it. Therefore, I would encourage voluntary disclosure right away before it’s too late and you will have to face the full brunt of the law,” Mr Das warned.

If you have evidence of a business or taxpayer committing tax or customs fraud, you are encouraged to report through 9907740 or 9980489 or email directly to ceo@frcs.org.fj. Feedback: jyotip@fijisun.com.fj