By JYOTI PRATIBHA
Challenges are faced by Fiji and other Pacific region in tax transparency.
A seminar is currently underway at the Westin Resort on Denarau Island for Pacific island countries to look at the technological advancement and issues related to tax transparency and transfer pricing.
Speakers from the Pacific Financial Technical Assistance Centre, an associate of the International Monetary Fund and International Finance Corporation, which comes under the banner of the World Bank Group kicked off the seminar yesterday.
Revenue administrator advisor of the Centre, John Hayes, said Pacific Island tax administrators have been brought together to exchange ideas and seriously look into transfer pricing and profit shifting issues.
He said it was important to understand how these issues are evolving in the Pacific island countries and how it can be dealt with.
“Transfer pricing is one of the main issues that we are working on now,” he said.
“We are helping countries build up their revenue basis and protect themselves against practices of some multinational companies.
“But also, making sure that tax administration is good for the private sector and that private sector tax payers can cope with tax administration.”
Transfer pricing is a profit allocation method used to attribute a corporation’s net profit or loss before tax to tax jurisdictions.
Fiji Revenue and Customs Authority chief executive Jitoko Tikolevu said they have been working with a guideline for the last 12 months to look at transfer pricing.
He said they would be formulating more stringent guidelines to curb this.
