FRCA investigates VAT Frauds by some companies

The Fiji Revenue and Customs Authority continues to discover serious non‑compliant behavior in terms of fictitious claimsand non‑lodgment of VAT returns and due payments.

FRCA Chief Executive Officer, Visvanath Das says in the past they have investigated some companies for VAT Fraud and systematic Tax Evasion.

He says some companies have been using fictitious invoices to claim VAT refunds.

In one instance, the VAT claim of a company was actually more than its total sale for that particular month.

FRCA is clamping down on businesses and individuals who falsely imply that they are registered for VAT by listing their Tax Identification Number on invoices. 

Non‑VAT registered persons are only allowed to issue a valid invoice when making a sale to its customer. 

FRCA stresses that these persons are not allowed to issue a Tax Invoice as this will only be issued by a VAT registered person.

Visvanath Das says they should not charge VAT on the value of the supplies and their invoice should clearly state that the value of the goods is quoted in VAT Exclusive prices.  

Das says by falsifying invoices, the business is not only defrauding its customers but the Fijian Government as well.

He says that FRCA will not tolerate such corrupt practices and offenders will face the full brunt of the law in terms of being prosecuted and fined up to 300% of tax their shortfalls.