[Photo: File]

Concerns have been raised over the growing use of transfer pricing by companies operating in Fiji, particularly those with overseas-related companies.

The issue was raised by Standing Committee on Economic Affairs Chair Sakiusa Tubuna during the presentation of the Fiji Revenue and Customs Service Annual Report for 2024–2025.

Tubuna questioned what measures FRCS is taking to identify and address companies involved in illegal transfer pricing practices.

In response, FRCS Chief Executive Udit Singh says Fiji is strengthening its efforts to address international tax issues and transfer pricing.

He says FRCS has joined the Base Erosion and Profit Shifting framework and the Global Forum, which has around 170 members.

“We are now manually exchanging information and soon, in 2027–28, to move to automatic exchange of information. So this means that companies that are operating in mutual jurisdictions will be sharing information.”

He says this will allow Fiji to access information on companies operating across jurisdictions, including how they are structured overseas and how much tax they are paying.

FRCS Director Corporate Services Shavindra Nath says the exchange of tax information is already taking place through manual channels, with plans to automate the process by the end of next year.

He says this is part of Fiji’s obligations following its removal from the European Union blacklist.

“While we have signed the agreement of the Global Forum, we have to implement the automatic exchange of information, or we call it CRS, and then there will be an exchange of information between 150 or 170 countries automatically.”

He says they have already started receiving information from other countries and can also request information when needed.