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14.5. Interest and Penalties

Late Return Filing

Failure to file a tax return attracts a penalty of 20% of the tax payable and additionally a penalty of 5% of the tax payable for every month of default.

Late Tax Payment

Interest at the rate of 1.5% monthly is levied on delay in payment of tax. Further, the shortfall in payment of advance taxes (per installment) is liable for a penalty of 40%. Also, a fine is levied at 10% of tax payable on the adjusted assessment by tax authorities.

COVID-19 Emergency Measures

In response to COVID-19 pandemic, Fiji has waived off the late tax payment penalties for taxpayers unable to pay their tax on time due to COVID-19 restrictions until 31 December 2021. Taxpayers can also opt to pay the taxes in installments.

Incorrect Filing

A fine of FJD 250,000 is levied if a taxpayer makes any false or incorrect declaration in a tax return or omits any relevant details from the tax return/declaration without any reasonable explanation (effective 1 August 2018). A penalty of FJD 250,000 is levied for failure to declare or false declaration of assets.

False or Misleading Statement or Overstatement

Effective 1 August 2020, a penalty at the rate of 15% per annum is levied on the tax shortfall or the tax benefit arising from a false or misleading statement or an overstatement, multiplied by the number of years or a fraction of a year (i.e., months) after the year of assessment for the tax return.

Other Interest and Penalties

A person who fails to keep, retain, or maintain accounts, documents, or records is liable for a penalty of 75% of the tax payable (if knowingly) or 20% of the tax payable (in other cases).