The Fiji Revenue and Customs Service (FRCS) has recently addressed misinformation regarding the mandatory Taxpayer Identification Number (TIN) requirement for mobile wallet accounts. The FRCS has noticed a wave of confusion among the public, particularly concerning the application of penalties and imprisonment linked to the TIN requirement.
The authority clarified that the penalties listed under Section 34A(2) of the Tax Administration Act are applicable solely to business taxpayers and mirror other offenses related to tax non-compliance. Importantly, these provisions do not extend to individuals or personal users of mobile wallet services. The FRCS assured consumers that they will not face fines of up to $25,000 or imprisonment of up to 10 years under this regulation.
Additionally, FRCS addressed concerns that the TIN requirement was a new revenue-raising measure. They emphasized that the mandatory TIN for electronic wallet accounts does not introduce any new taxes. Instead, the requirement serves as a compliance and risk-management strategy aimed at enhancing taxpayer profiling, identifying potential tax evasion, and bolstering national anti-money laundering initiatives. Similar identification requirements have been long established within the commercial banking sector.
In their communication, the FRCS urged the public to utilize official channels for accurate information and reaffirmed their commitment to maintaining clear and transparent communication with the public. This proactive stance is seen as an effort to foster understanding and compliance among taxpayers, ensuring that individuals and businesses navigate the requirements with clarity.