Riya Mala 
[Photo: File]
The Fiji Revenue and Customs Service is strengthening its monitoring of unexplained wealth, with a new asset declaration framework expected to take effect from the next fiscal year.
Concerns over how unexplained wealth will be monitored were raised during the presentation of the FRCS 2024–25 Annual Report to the Standing Committee on Economic Affairs.
FRCS Director of Corporate Services Shavindra Nath says the new asset declaration framework will provide another mechanism for monitoring taxpayers’ assets and financial positions.
He adds that FRCS already has powers under existing tax laws to question assets that do not appear consistent with a taxpayer’s 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 says that where an audit identifies that a taxpayer’s accumulated assets or profits do not match their reported earnings, the taxpayer must explain how those assets were obtained.
FRCS Chief Executive Udit Singh says the organisation is actively setting up a unit to specifically examine 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.”
FRCS says the new measures will strengthen its ability to identify and scrutinize wealth that cannot be adequately explained through legitimate income.
