The Fiji National Provident Fund and Fiji Revenue & Customs Authority yesterday signed a Memorandum of Understanding (MOU) that allows for exchange of information between the two organisations that will detect, verify, investigate – with the objective to minimise - tax and superannuation evasion cases.

Signing the MOU were Fund Chief Executive Mr. Aisake Taito and FRCA Chief Executive, Mr. Jitoko Tikolevu.

Mr. Taito said the MOU also establishes and strengthens the working relationship between the two organizations as they are both able to verify customer information to detect tax evasion and failure to pay FNPF contributions and minimize fraudulent activities.

“I am pleased that we are able to execute this agreement as we can maximize revenue and contribution collections through this effective and efficient treaty,” Mr. Taito said.

He said the Fund would be able to effectively manage the Suspense Accounts through the Tax Identification Numbers (TIN). Suspense is the account which holds unidentified contributions given lack of member information.

The agreement allows FRCA to access general information including the FNPF Voluntary Member Accounts in identifying tax evasion cases, especially members whose voluntary contributions exceed the minimum threshold for taxation requirements during a year.

Mr. Tikolevu also echoed his sentiments saying the MOU was a window of opportunity for the two organizations.

“This is a milestone achieved in terms of information exchange on members and we at FRCA are willing to facilitate and assist FNPF requests regarding member information. It would certainly assist our compliance work and verification of identification of taxpayers,” Mr. Tikolevu said.

The MOU is effective immediately and may be amended to suit the future business operating climate.