Areas of Improvement & Expectations for Tax Practitioners FIA West Seminar 25/11/2016. 1

Outline Introduction Objectives Common Areas for Improvement Conclusion

Introduction Tax professionals are key allies in communicating, monitoring and regulating standards of conduct amongst the tax practitioner community. Tax agents and accountants have an important task, that is to prepare accurate tax returns and submit to FRCA. If preparers make mistakes, government loses on its revenue and the taxpayers face the consequences in terms penalties. FRCA could achieve better value for money by increasing the level of tax compliance of taxpayers who are represented by tax agents. This is only possible through partnership between tax agents and FRCA. Accurate reporting will increase revenue and reduce cost of engagement. There areas of concern can be discussed more openly and improved upon.

Objectives Strengthen partnerships with practitioners to achieve the highest level of professional integrity and improve tax compliance Iron out areas of improvement to have a better compliance level. Reduce the cost of compliance Provide certainty and Reduce the cost of doing business in Fiji

Common Areas for Improvement Common errors by Accountant and taxpayers Recommendation Claiming VAT from unregistered taxpayers Taxpayers to clarify with FRCA on taxpayer registration. Taxpayers failing to register for VAT when threshold Exceeds $100,000.00. Accountants should advise taxpayers accordingly. More education to taxpayers. Common feedback through analysis reveals that Income tax return shows income far excess of $100,000.00 and that taxpayer is not registered for VAT. Registration for STT and EL Taxpayers to get registered for STT and EL as per Legal Notices The requirement of issuance of proper tax invoices Taxpayers to be reminded and educated on the particulars needed in a tax invoice for all sales above $100.00 and particulars for all below $100.00

Common Areas for Improvement Common errors by Accountants and Taxpayers Recommendation Taxpayers repetition on similar offences over same issues Please educate taxpayers otherwise there will harsher penalties Even though taxpayer and tax agents has good knowledge of tax laws but submit an incorrect tax declaration Ethical obligation of practitioners and taxpayers. Professional standards to be followed. Record keeping As per requirements Late filing of returns On time filing Incomplete filing of returns All details and requirements to be fulfilled on lodgment Late payment of taxes On time payments

Common Areas for Improvement Common errors by Accountants and Taxpayers Recommendation Estimating income and deductions Ensure to use accurate figures and well referenced Falling to declare overseas income Need to declare all foreign income and income earned in fiji. Book entries without corresponding transaction Prepare factual entries All sources of income not declared Declare all revenue centers

Common Areas for Improvement Common errors by Accountants and Taxpayers Recommendation Taxpayers does not respond to audit queries' in a timely manner and has no reasonable excuse for the delay in response, thus delays the progress of audit Full cooperation needed, so there is quicker turnaround of audit cases Tax returns lodged with FRCA and returns submitted to other stakeholders e.g. Bank differs a lot. All stakeholders to be given true and fair accounts.

Conclusion FRCA will develop and maintain ongoing dialogues and close working relationships with the our strategic partners comprising accountants, tax agents & professionals and taxpayers. An atmosphere of open dialogue and respect will encourage us more to share information, provide honest feedback on areas of improvement for FRCA and its strategic partners . This partnership will build trust and instill confidence in our revenue administration and the Fijian economy.

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