Another major supermarket issued with a huge tax bill

touriAnother supermarket has been issued a huge tax bill. Fijivillage has been informed that the tax demand which is for a significant amount, was given to the supermarket chain last week.

They have been given 7 days to respond on whether they will settle the tax bill.

Another supermarket chain was slapped with a $53 million tax bill earlier this year.

That supermarket chain has made payment arrangements to pay the $53 million.

Meanwhile, the Fiji Revenue and Customs Service has also revealed that only 3% of the total revenue collected in the 2016/2017 financial year was from all the supermarkets in Fiji.

Chief Executive Officer Visvanath Das says the tax collected from the supermarkets was $43.65 million out of the total revenue collected by Revenue and Customs which amounted to $1.5 billion.

He says this cannot be the true and actual tax to be paid by the supermarkets as everyone in the country buys goods from the supermarkets and a 3% tax income is clearly understated.

However, this is now being addressed with audits underway.

Audits continue for three other supermarket chains.

There are 794 supermarkets in the country and the VAT Monitoring System will be installed in all supermarkets from 1st January 2018.

Revenue and Customs Service has already said that they are now assessing why a number of businesses, companies, trusts, estates and partnerships are not submitting their tax returns.

There are 43,196 active businesses in Fiji however only 22,303 of these businesses are filing tax returns.

This means that only 52% of the businesses in the country are filing tax returns.

There are 10,386 active companies in the country and only 5,648 or 54% of the companies are filing tax returns.

For Trusts and Estates, there are 5,313 of them in the country however only 800 are filing returns.

This is only 15% of the total active Trusts and Estates in Fiji.

The same goes for partnerships ‑ where there are 4,009 active partnerships and only 600 are filing tax returns.

This is 15% of the total active partnerships in Fiji.

Revenue and Customs hopes all these taxpayers will comply as they would prefer voluntary compliance.

He says if this is not done, then these taxpayers will face up to 300% in penalties.

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