Party questions FRCS

THE National Federation Party claims Fiji Revenue and Customs Service (FRCS) is compromising state revenue by asking taxpayers to make value added tax (VAT) payments “based on their own calculations”.

NFP leader Professor Biman Prasad said an immediate independent investigation should be launched into the operations of FRCS over what he said was the failure of the FRCS information technology (IT), including its VAT revenue collection system.

“FRCS is unable to correctly process and input zero-rated or zero per cent VAT following removal of VAT on some basic and essential food items from 1st April following the Revised 202122 Budget,” he said.

“A public notice issued by Mr (Mark) Dixon FRCS CEO on 13th May advises registered taxpayers that lodgment of April 2022 VAT returns has been extended until further notice and that late lodgment penalty isn’t being applied.

“The notice goes on to say that taxpayers making VAT payments can do based on their own calculations and any shortfall in the amount payable to FRCS will also not attract any penalty.

“This means that the FRCS system is dysfunctional and businesses will have to manually calculate their VAT collection and make payments at least for April and May.

“What this means is when the system is fixed and correct figures are calculated, there are certain to be shortfalls in payment.

“And this will heap financial burden on businesses, particularly small and medium traders who will be asked to pay the outstanding sum as soon as possible although FRCS says no penalty will be charged.

“Government should have ensured FRCS rectified VAT revenue collection systems or at least had the capability of immediately adapting to swift changes well before the budgetary measures were announced”.

FRCS’s manager Corporate Communications , Corporate Services Devika Narayan referred The Fiji Times to the May 13 public notice when asked the reason VAT returns were to be extended until further notice.

“FRCS is receiving VAT returns and payments,” she said.

Ms Narayan did not provide any figures on the dollar value of VAT not collected in April and May.