Fiji has taken a significant step towards enhancing its tax transparency and international cooperation by officially joining the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC). The signing ceremony took place in Paris, led by Esrom Immanuel, Fiji’s Minister for Finance, Commerce and Business Development. With this action, Fiji becomes the 152nd jurisdiction to commit to the convention.
The MAAC is widely regarded as the most comprehensive multilateral framework for tax cooperation, enabling jurisdictions to share tax-related information in various ways, including on request, spontaneously, or automatically. It also facilitates simultaneous tax examinations and helps in tax recovery. Minister Immanuel highlighted the groundbreaking nature of this agreement, asserting that it will not only provide significant advantages for Fiji but also bolster its collaborative initiatives with the global community while reinforcing its commitment to transparency and fairness.
An important aspect of joining the MAAC is its potential to aid in removing Fiji from the European Union’s list of non-cooperative jurisdictions, commonly referred to as the EU Blacklist. This move is expected to enhance Fiji’s international standing and foster stronger economic relationships worldwide.
Following the signing, Fiji will undertake the necessary domestic procedures to fully join the MAAC, enabling it to utilize a unified legal framework for information exchange with all participating jurisdictions, including major financial hubs.
Fiji’s dedication extends to implementing the Automatic Exchange of Financial Account Information (AEOI), supported by legislative reforms and evaluations of confidentiality measures. Udit Singh, Chief Executive Officer of the Fiji Revenue and Customs Service (FRCS), expressed that joining the MAAC represents a pivotal achievement, providing Fiji with the legal foundation necessary for AEOI and the Exchange of Information on Request (EOIR) to effectively combat tax evasion and avoidance.
With this landmark progression, Fiji is poised to uphold international tax transparency standards and aims to contribute meaningfully to the Global Forum’s efforts to establish a fair, transparent, and cooperative international tax system. Continued partnerships with the Global Forum Secretariat and international allies will play a critical role in ensuring the effective implementation of these standards, ultimately boosting compliance and enhancing Fiji’s tax revenues. This proactive approach demonstrates Fiji’s commitment to responsible governance and global economic cooperation.