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Presentation on theme: "FIA West Seminar"— Presentation transcript:
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FIA West Seminar25/11/2016.
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Areas of Improvement & Expectations
for
Tax
Practitioners
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Outline
IntroductionObjectives Common Areas for ImprovementConclusion
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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.
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Objectives
Strengthen partnerships with practitioners to achieve the highest level of professional integrity and improve tax complianceIron out areas of improvement to have a better compliance level.Reduce the cost of complianceProvide certainty and Reduce the cost of doing business in Fiji
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Common Areas for Improvement
Common errors by Accountant and taxpayersRecommendationClaiming VAT from unregistered taxpayersTaxpayers 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 ELTaxpayers to get registered for STT and EL as per Legal Notices The requirement of issuance of proper tax invoicesTaxpayers 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
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Common Areas for Improvement
Common errors by Accountants and TaxpayersRecommendationTaxpayers repetition on similar offences over same issues Please educate taxpayers otherwise there will harsher penaltiesEven though taxpayer and tax agents has good knowledge of tax laws but submit an incorrect tax declarationEthical obligation of practitioners and taxpayers. Professional standards to be followed.Record keepingAs per requirementsLate filing of returnsOn time filingIncomplete filing of returnsAll details and requirements to be fulfilled on lodgmentLate payment of taxesOn time payments
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Common Areas for Improvement
Common errors by Accountants and TaxpayersRecommendationEstimating income and deductionsEnsure to use accurate figures and well referencedFalling to declare overseas incomeNeed to declare all foreign income and income earned in fiji. Book entries without corresponding transactionPrepare factual entriesAll sources of income not declared Declare all revenue centers
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Common errors by Accountants and TaxpayersRecommendationTaxpayers 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 auditFull cooperation needed, so there is quicker turnaround of audit casesTax 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.
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Common Areas for Improvement
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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.
