The Fiji Revenue and Customs Service has raised serious concerns about unregulated overseas student recruitment agencies operating in the country.

It says some of these agencies are involved in questionable financial practices, including possible tax evasion and the exploitation of students and their families.

Speaking at an inter-agency stakeholders Talanoa session organized by the Higher Education Commission Fiji, FRCS Manager for Post-Assessment and Field Inspection Taxation, Karishma Kumar, outlined findings from recent checks on recruitment agencies.

Kumar says investigations have revealed that some students have ended up making multiple upfront payments before securing overseas study placements.

She says in some cases, full tuition payments for New Zealand institutions amounting to between $17,000 and $20,000were demanded upfront

“The agents are from Fiji, but the agency guy was from Australia. So, he was here for a couple of days in Fiji, and all the transaction was happening through mostly through the M-paisa and nominated currency dealers in Fiji financial institutions, with most transactions conducted through mobile money platforms and selected financial institutions.”

Kumar says the structure of these transactions raised red flags, particularly where agency fees re remitted offshore without the appropriate withholding taxes being applied.

“We are more interested in how much money is coming in. And when the agency fees are sent out it actually attracts a collection of withholding taxes. So, some of it is being remitted without the necessary implications. So that’s what FRCS is actually trying to bring down. And of course, all the money earned by the individuals included that needs to be declared and accounted with us.”

Higher Education Commission Fiji Chair, Steve Chand also cited cases where students arrived overseas with no support or arrangements in place, leaving them exposed and dependent on goodwill from diaspora communities.

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