State owes FIRCA $20m in tax
Friday August 31, 2007

The State owes the Fiji Islands Revenue and Customs Authority (FIRCA) around $20.4 million in tax, says FIRCA's acting chief executive Parmod Achary.

Achary made this revelation in an announcement that FIRCA is intending to write-off $6 million as uncollectible debt.

FIRCA is reporting tax arrears of July 31 to be totalling at $155.9 million. Out of this, Government arrears are $20.4 million and statutory bodies owed $6.4million.

"The writing off debts by FIRCA is normally the last resort after all avenues of debt recovery is fully exhausted," Achary said.

He said the $6m to be written-off is a "standard practice of any business, in writing off debts after all avenues off collection have been exhausted".

"In some cases the taxpayer has migrated, closed business, died or become bankrupt.

"This does not reflect FIRCA's inability to perform," he said.

On the current arrears, Achary said a special project team consisting of senior staff is set up within the Debt Management Unit "to address and provide personalised service to ensure debts are recovered".