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Fiji Revenue Service Recovers $80 Million in Unpaid VAT Using Innovative Tech & Fieldwork

2025-08-24
Fiji Revenue Service Recovers $80 Million in Unpaid VAT Using Innovative Tech & Fieldwork
FBC News

Suva, Fiji – The Fiji Revenue and Customs Service (FRCS) has achieved a significant victory in its ongoing efforts to combat tax evasion, recovering approximately $80 million in unpaid Value Added Tax (VAT). This remarkable success is attributed to a novel strategy combining advanced technology with traditional fieldwork, marking a new era in tax collection for Fiji.

The innovative approach, spearheaded by FRCS Director of Corporate Services Shavindra Nath, involves a meticulous “mixing and matching” exercise. This process analyzes VAT input and output data, identifying discrepancies that often indicate underreporting or non-payment. Instead of relying solely on traditional auditing methods, FRCS is leveraging data analytics to pinpoint potential irregularities with greater speed and accuracy.

“We’ve moved beyond simply reviewing documents,” explains Nath. “Our new strategy allows us to cross-reference vast amounts of data to identify patterns and anomalies that would be difficult to detect manually. This, coupled with targeted field investigations, has proven incredibly effective.”

How the Strategy Works: A Two-Pronged Approach

  • Data Analytics & Technology: FRCS utilizes sophisticated software to analyze VAT returns, comparing inputs (what businesses receive) and outputs (what they charge). This identifies inconsistencies, such as unusually high input claims or low output declarations.
  • Field Investigations: Once potential discrepancies are flagged, FRCS teams conduct on-site visits to verify the data and interview business owners. This ensures accuracy and helps uncover the root causes of non-compliance.

Impact and Future Plans

The $80 million recovery represents a substantial boost to Fiji’s national revenue and underscores the effectiveness of this blended approach. The FRCS plans to further expand the use of technology and data analytics in its operations, focusing on other areas of taxation beyond VAT.

“This is just the beginning,” Nath stated. “We are committed to modernizing our processes and utilizing every available tool to ensure fair and equitable tax collection for the benefit of all Fijians. We want to create a level playing field for businesses and ensure that everyone contributes their fair share.”

The success of this initiative not only demonstrates the FRCS's commitment to revenue enhancement but also serves as a model for other revenue authorities in the region looking to improve their tax collection efficiency. The combination of technological innovation and diligent fieldwork is proving to be a winning formula for Fiji.

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