The Fiji Revenue and Customs Service (FRCS) has recently mandated that individuals and businesses must declare their M-PAiSA balances in their annual financial statements and asset declarations. This requirement was addressed during submissions to the Standing Committee on Foreign Affairs and Defence, where committee member Rinesh Sharma inquired whether businesses receiving payments via M-PAiSA would need to report these transactions.
In response, FRCS Director of Taxation, Momina Beg, clarified that all financial assets, including mobile money holdings, are to be included in a taxpayer’s financial disclosure. She emphasized that all assets must be declared as of a specified date, typically December 31st for businesses. The FRCS is developing a new declaration form to offer detailed guidance on reporting these financial assets, ensuring clarity for taxpayers on what they need to disclose.
This regulatory change is part of a broader effort by the Fijian government to enhance financial transparency and accountability, particularly in regard to digital assets. The recognition of M-PAiSA as a taxable asset marks a significant shift towards integrating mobile money into formal economic reporting. This move aligns with earlier initiatives aimed at improving compliance and combating tax evasion by enforcing the use of Tax Identification Numbers (TINs) among mobile wallet users.
The government’s efforts are bolstered by ongoing developments to combat the shadow economy by ensuring that all financial transactions are accounted for and taxed appropriately. The incorporation of electronic financial services like M-PAiSA into the formal economic framework reflects Fiji’s commitment to promoting a fair and accountable economic environment.
As these changes unfold, they pave the way for a more organized financial ecosystem, highlighting the importance of compliance in national development. This proactive approach not only addresses existing regulatory gaps but also fosters a culture of responsibility and transparency among businesses and individuals in Fiji. The government aims to ensure that all citizens contribute their fair share, supporting sustained economic growth and stability for the nation.