The Fiji Revenue and Customs Service (FRCS) has taken steps to clarify recent misunderstandings regarding the mandatory Taxpayer Identification Number (TIN) for mobile wallet accounts. The FRCS has observed a growing confusion among the public, particularly concerning potential penalties and imprisonment related to the TIN requirement.
The authority clarified that the penalties outlined in Section 34A(2) of the Tax Administration Act apply exclusively to business taxpayers and correspond with other tax non-compliance offenses. Importantly, these penalties do not apply to individual users of mobile wallet services. The FRCS reassured the public that they will not encounter fines of up to $25,000 or the threat of imprisonment for failing to comply with this regulation.
Furthermore, the FRCS addressed worries that the TIN requirement was a newly introduced revenue-generating measure. They highlighted that mandating a TIN for electronic wallet accounts does not create any new taxes. Rather, this requirement is designed as a compliance and risk-management tool, aimed at improving taxpayer profiling, identifying potential tax evasion, and enhancing national anti-money laundering efforts. Such identification measures have long been a standard practice within the commercial banking sector.
In their outreach, the FRCS urged the public to seek information through official channels to ensure accuracy and promote clear communication. This commitment is viewed as a proactive approach to educating taxpayers and ensuring that both individuals and businesses have a better understanding of their obligations, thereby facilitating smoother compliance with tax requirements.