MSME knowledge gap
THE Fiji Revenue and Customs Service’s (FRCS) Compliance Improvement Strategy unit had identiƝed a concerning trend of non-compliance among micro, small and mediumsized enterprises (MSMEs).
FRCS Director Taxation Momina Beg said that analysis suggested a potential knowledge gap regarding FRCS tax processes within the MSME community.
She said they had adopted a pioneering approach to proactively engage with MSME taxpayers to bridge that gap.
She said this Ɲrst-mover strategy is aimed at empowering MSMEs with the knowledge they needed to achieve tax compliance.
“We Ɲrmly believe that providing relevant training and coaching will not only contribute to the growth and prosperity of the MSME sector but also foster a strong and mutually beneƝcial relationship between FRCS and its valued clients,” Ms Beg said.
FRCS chief executive Udit Singh their concern was to ensure MSMEs were aware of their obligations when they reach tax thresholds and when Ɲling PAYE and other type of taxes.
“I think it’s a knowledge gap more than delinquent taxpayer issue. That’s what we are trying to do — to make sure we are reaching out to them,” Mr Singh said.
He said FRCS’ education unit also travelled to remote areas to offer support to MSMEs there.
Of the registered 117,000 MSMEs with FRCS, only 22,800 were paying taxes amounting to $59million a year.
“We’re not very aware how many of those (MSMEs) are not meeting their tax obligations. It is something we are trying to Ɲnd out more about in the next year or so.”
According to FRCS deƝnition of MSME, any business earning an income less than $500,000 a year is considered a small and micro enterprise and is eligible for a number of tax concessions.