REPORT 2013

FIJI ISLANDS 

REVENUE & CUSTOMS 

AUTHORITY 

SIX MONTHS 

REPORT 2013

Contents 

Chief Executive Officer’s 

Statement 

3 

Organization Structure 4 

Management Team 5 

Purpose of the Report 4 

Executive Summary 4 

Key Result Areas & Objectives 4 

Financial 7 

Customer 10 

Environment & Community 12 

Internal Process 13 

Employee Satisfaction 18 

Innovation and Learning 20 

Financial Highlights 21 

The Year Ahead 2013 26 

Our Vision 

To be the premier revenue collection, border management 

and trade facilitation agency in the region. 

Our Mission 

To be recognized as a leading contributor to Fiji’s economic, 

security and social programmes, through effectively 

collecting the majority of Government revenues, carefully 

protecting its border, facilitation of trade and providing 

quality advice to key stakeholders. 

Our Values 

Leadership 

Results Focus 

Continuous Improvement and Learning 

Design Quality and Prevention 

Partnership Development 

Valuing Employees 

One Organisation

3 

ORGANIZATION STRUCTURE 

BOARD OF 

DIRECTORS 

BOARD SECRETARY 

CHIEF EXECUTIVE 

OFFICER 

GENERAL MANAGER 

TAXATION 


CUSTOMS 


CORPORATE SERVICES 

NATIONAL MANAGER 

REVENUE COLLECTION 


BORDER CONTROL 


FINANCE 


AUDIT & COMPLIANCE 


CUSTOMS REVENUE 


HUMAN RESOURCES 


DEBT MANAGEMENT 

SERVICES 


CUSTOMS COMPLIANCE 


POLICY, ECONOMIC 

ANALYSIS & RESEARCH 


INFORMATION 

TECHNOLOGY 


LEGAL SERVICES 


INTERNAL ASSURANCE

4 FRCA SIX MONTHS REPORT 2013 

PURPOSE OF THE REPORT 

The 2013 FRCA Half Year report is being prepared in compliance with Section 43 of the FRCA Act, which requires FRCA to submit 

a report on its activities for the first half of each financial year – Half-Yearly Report. The report is to be submitted by the end 

of August, and shall include the information required by the Authority’s Statement of Corporate Intent to be given in the report. 

EXECUTIVE SUMMARY 

This report contains a summary of achievements made in relation to the broad organizational goals and objectives, linking to 

the Key Result Areas and performance targets set out in the 2013-2018 Corporate Plan. It also provides brief reports on the 

various activities undertaken by the Authority. This report is aligned to the Critical Success Factors under the Balance Scorecard. 

FRCA’s performance targets and assessment are now based on the Balanced Scorecard which is a measurement-based strategic 

management system which provides a method of aligning business activities to the strategy, and monitoring performance of 

strategic goals over time. 

For the first six months of 2013, revenue collection stood at $829.1 million. This was above the forecast by $31.8 million or 4 

percent. The major components of revenue were Income Tax, Value Added Tax (VAT) and Customs collections. The total revenue 

collected as at 30 June 2013 was 12% higher than that collected in the same period last year. A separate analysis on the revenue 

collected is provided under Critical Success Area: FInancial of the Report. 

KEY RESULT AREAS & OBJECTIVES 

The 2013-2018 Corporate Plan identified six Key Result Areas (KRA) for the Authority and associated organizational objectives, 

which are being implemented by the Authority in the respective divisional and sectional plans. They are as follows: 

KRA 1: Develop a compliance risk management framework in 

order to identify and treat the risks to voluntary compliance 

• Identification of Risk to Voluntary Compliance by: 

• Bench marking similar Jurisdictions (NZ / Australia) 

• Engaging with stakeholder Forums to maximise on 

industry knowledge 

• Internal business process audits 

• Timely Treatment of the Risk identified 

• Develop interventions to treat the Risk 

• Improve awareness and information services to the 

• public 

• Develop a framework to treat risks 

KRA 2: Optimise FRCA processes, systems, structures, legislation 

and policies to ensure they are modern and reflect best practice 

to support the aims of FRCA 

Aims are to: (a) minimise FRCA costs through maximising the 

use of technologies; (b) support the identification and 

targeting of risk; (c) minimise the cost of compliance to 

business; (d) minimise the opportunity for internal fraud; and 

(e) implement the IMF and WCO recommendations: 

• Modernize processes and systems and minimize cost 

through technology 

• Integration of communication systems between 

FRCA offices 

• Implement video conferencing 

• Implement a Valuation database 

• Implement Data Warehousing & Data Mining 

• Sustainable IT Systems (Review/replacement of FITS) 

• Implement a unified FNPF/ID national ID Card - 

Procure risk management software 

• Implement E-Lodgment through Tax Portal Upgrades 

• Implement a data warehouse 

• E-Processes. Through technology, taxpayers, 

importers and intermediaries will interact with 

FRCA in areas of obtaining filing, corresponding and 

paying 

• Queuing Machine and Manual recording system 

to be reviewed to capture common queries and 

feedback 

• Introduce an Electronic Document Management 

System 

• Identification of New Off-site and Archival Storage 

Area 

• Automation of the Tourist VAT Refund Scheme and 

other initiatives 

• Single Window/Customs System Upgrade. Review 

and assess feasibility of establishing a single window 

concept 

• Support risk identification/ targeting 

• Regular updating of Risk Profile Matrix on Industries 

with Issues identified 

• Integration of risk profiling between Taxation and 

Customs

5 

• Risk & Disaster Management; Complete Disaster 

Recovery Project and Business Continuity Plan 

• Minimize compliance cost 

• Implement PAYE As Final Tax 

• Implement Self-Assessment to tax processes 

• Improve awareness of the Customs Risk Management 

Framework 

• Review & Update of Compliance Standard Operating 

Procedures (SOP) for Tax & Customs 

• Minimize internal fraud 

• Develop a Fraud Charter 

• Maximize synergies in intelligence gathering 

• Conduct Staff Tax Audits 

• Implement IMF & WCO recommendations 

• Review Customs processes & structure 

• Maximize the synergies within FRCA 

• Establish quality control process to improve audit 

assessments 

• Review of the Customs Act and SOPs 

• Implement a Centralized Customs inspection yard 

• Purchase of an x-ray machine 

• Implement an Authorized Economic Operator 

Programme 

• Establish a Canine Unit 

• Implement SAFE Donor meeting 

• Implement Quality Econometric Techniques 

KRA 3: FRCA will tailor its services and assistance programmes to 

the changing needs and expectations of all stakeholders 

• Effective and enduring relationships are developed with 

key stakeholders 

• Improve external communication program 

• Keeping pace with stakeholder needs and advancement 

in technology 

• Introduce Priority Services to Encourage Compliance 

• Establish Memorandum of Understanding (MOU) 

with Other Govt. Agencies 

• Expand the scope or benefit of priority services 

• Customer Service Centre to Operate as a One-Stop-Shop 

• Improve Access to Services 

• 24 hour Operation at the Wharf (Evaluate readiness 

to expand to all ports) 

• Refurbishment and Expansion of FRCA Nadi Offices 

• Provide Dedicated Assistance for Targeted Stakeholders 

• Establish a PAYE Dedicated Team 

• Review and Modernise Standard Operating Procedures 

• Improve Access to Information through Education & 

Awareness Programs 

• Develop a Customer Service Charter & Taxpayer 

Charter 

• Conduct Awareness & Training for amended and new 

legislation and policies – Internal & External 

• Review of Public Relations techniques and materials 

• Expand Partnership Arrangements to Facilitate Trade, 

Collection, Security 

• Expand Bilateral & Regional Partnership 

Arrangements through MOUs and Double Tax 

Agreements 

Nadi International Airport 

• Implement SAFE Framework of Standards 

• Regional Integration with other customs 

administrations 

• Implement a Process driven structure for Customs 

• Benefits for compliant traders to be developed 

• Re-write and Modernization of Customs legislation 

KRA 5: FRCA’s human capabilities will meet the changing needs 

of the business and employee contribution and innovation will 

be recognized 

• Staff will meet the needs of the reforms including selfassessment 

and RKC/Safe 

• Strengthen the Training framework 

• Enhancement of the Regional Training Centre 

• Specialized technical and legal competencies will be 

developed for FRCA to remain abreast of the increasing 

complexities of the global trading of international firms 

who trade within Fiji 

• Conduct a 360 Degree Staff Appraisal 

• Maximize use of e-learning for Tax and Customs 

• Implement a Staff Climate Survey and Survey Results 

• Implement Rewards & Recognition Programmes 

• Formalize Policy and Programmes for Staff 

Recognition and Rewards. 

• Work Life Balance Programmes 

• Implement Health & Fitness Programmes 

• Prepare a Gym Set Up and Implementation Plan 

• Implement Community Assistance Programmes 

• Service Excellence Award 

• Map out plans to win the Prime Minister’s Award 

• Improve Literacy Programmes 

• Build up FRCA Library Stock by June 2013 

• Work towards 100% membership from FRCA Nasese 

Complex 

• Core HR policies will continue to be reviewed and 

modernized to fit the changing needs of the core 

business - Job design and structures; industrial 

relations; reward and recognition; terms and conditions; 

performance management; hours of work; training and 

career development 

• The structure of FRCA will separately identify FRCA 

Headquarters activity and branch activity with a core 

business “design” function included in the Headquarters 

function 

KRA 6: FRCA will be accountable for the effective use of its 

resources 

• A performance budgeting process and measures will be 

in place to measure and report on the effectiveness of 

each part of each core business process 

• Introduce timely monitoring of budget vs target 

• Submit Capital Expenditure Plan to the Board within 

specified timeline 

KRA 4: Border and community security will be continually 

improved 

• Strengthening of all Border Control functions 

• Establish a Cargo Non-Intrusive System Unit 

• Establish central networking system with other 

border agencies 

• Fully Implement inbound Hold Baggage Scanning 

System (HBSS) for compulsory imagery of all inbound 

passengers and crew baggage, commencing with


Balance Scorecard (BSC) 

FRCA’s performance targets are based on the Balance 

Scorecard which is a measurement-based strategic 

management system that aligns business activities to 

Key Performance Indicators. The Scorecard concept 

was developed by Dr. Robert Kaplan (Harvard Business 

School) and David Norton and enhances conventional 

financial measures by setting targets of performance in 

3 key nonfinancial areas i.e. (i) our relationship with our 

customers, (ii) our internal processes and (iii) our learning 

and growth. Consequently, it relies on: translating our 

Vision so our targets are realistic; communicating 

and linking the Scorecard to all staff so everyone 

understands how their performance supports the overall 

strategy; planning our business so our budget supports 

our goals and feedback and learning. 

A Working Group was established to identify FRCA’s 6 

Critical Success Factors which are broad areas that the 

organisation must focus on to achieve its vision. Another 

2 tiers below the CEO’s Scorecard are the Division and 

Individual Scorecards. To assess the bonus payments all 

staff are then evaluated on the: CEO’s Scorecard (1/3); 

Division Scorecard (1/3) and Individual Scorecard (1/3). 

The total score for each Scorecard will then be averaged 

to derive the final performance score. The Scorecard was 

implemented in the Authority in 2012. 

This Report is aligned to the 6 Critical Success Factors 

under the Balance Scorecard.

7 

Critical Success Factor: Financial 

• Fiscally responsible management. 

• Strengthen risk management. 

FRCA has recorded solid revenue collections as at June 

2013 with a massive positive variance over the forecast and 

2012 actual. The $829.1m collection as at 30 June, 2013 has 

exceeded the: 

• Forecast by $31.8m (or 4.0% over the forecast); and 

• Actual collection by $88.6m (or 12.0% over last year same 

period). 

The variance over the forecast of over $31.8m has been 

phenomenal as such resounding performance has rarely been 

recorded in FRCA’s history. Cumulative collections to June in 

the past have never recorded a variance of such magnitude. 

Between 2004 and 2012, FRCA’s January to June collection has 

exceeded the forecast by an average of $1.9m; hence the 2013 

performance was 16 times better than the average. Refer to 

Table 1. 

Table 1: Revenue Collections (January to June 2013) 

Tax Type 

Jan – Jun 

2013 ($m) 

Actuals 

Jan – Jun 

2013 ($m) 

Forecast 

Variance 

($m) 

Jan – June 

2012 ($m) 

Income Tax 181.2 186.0 (4.8) 204.8 

VAT 330.5 308.0 22.5 279.1 

Import 

Duties 

199.5 191.4 8.1 161.4 

Others 117.9 111.8 6.0 95.1 

TOTAL 829.1 797.3 31.8 740.5 

Chart 1: Cumulative Revenue Trend 

The current revenue trend is following the same pattern as 

that of the previous years as shown in the Chart 1. Despite the 

tax cuts of the 2012 Budget, the revenue collections in 2012 

and 2013 have remained higher than that of the 2011 levels. 

This is evident through the steepness of the curves, with the 

2012 revenue line having the steepest slope compared to the 

last two years. 

The revenue buoyancy as measured by relative change in 

economic growth and tax growth shows that for a percentage 

of economic growth in 2013, collections is multiplying faster 

than that recorded in 2012 (refer Table 2). For a 1% growth 

in GDP in 2013, the revenue is growing by over 4.4 percent. 

This rate is seen to be high as the normal expectation is that 

a 1.0% growth in GDP should lead to about 1.5% growth in 

tax. It can also be noted that consistent with the 2013 Budget 

Fiscal Framework, the tax revenue as a percentage of GDP is 

estimated to be 23.9% of GDP. The Tax to GDP ratio as at June 

is 10.7%. 

Another important feature of the collections is the changing 

revenue mix. As expected, a pattern is being established where 

the income tax revenue will decline as a percentage of overall 

tax collections and this decline will be picked up in the Value 

Added Tax (VAT) collections. The VAT dominance as the source 

of most revenue continued in 2013 and it has accounted for 

about 40% of total tax take relative to 38% last year. This 2% is 

equivalent to $51.4m. This shift in collections from Income Tax 

to VAT has been expected owing to reduction in the income 

tax rate which has increased VAT revenue through increased 

consumption. Refer to Chart 2. 

Table 2: Revenue Elasticity 

2012 2013 

GDP Growth 2.5 2.7 

Tax Growth 9.4 12.0 

Elasticity 3.8 4.4 

Chart 2: Comparative Tax Mix Jan-June 

Income Tax, 

22% 

January to June 2013 January to June 2013 

Others, 14% 

VAT, 40% 

Income Tax, 

27% 

Others, 13% 

VAT, 38% 

It is also noticed that there is a significant shift in the 

composition of revenue in terms of the factors of production 

following the significant tax policy reforms in 2012 involving 

reductions in personal and corporate tax rates. It is clear that 

taxes on labour income today accounts for 7% as opposed 

to 12.8% in 2011. The shift toward consumption as earlier 

commented on, has also been dramatic with an increase from 

32.3% to 36.2% in 2013. This also includes the imposition 

of other user-pay levies. It is also noted that the revenue 

collection from trade has also increased from 38.1% to 40.2% 

in 2013 signifying large imports to support greater economic 

activity following tax cuts. Refer to Chart 3. 

Import 

Duties, 24% 

Import 

Duties, 22%


Drivers of Current Revenue Growth 

The current revenue growth is caused by several factors such 

as economic activity, sound revenue policies, compliance and 

the various FRCA reforms. The 2013 revenue forecast was 

based on: 

• a GDP Growth rate of 2.7 percent; 

• compliance collection of $70.0m 

• debt collection of $50.0m 

• 2013 revenue policy impact of $34.1m (PAYE allowances 

• removal gain of $11.2m, Fiscal Duty changes of $6m, 

Excise Duty on Cigarettes of $7.5m, Stamp Duty changes 

gain of $9.4m) 

The 2012 tax cuts had a wider impact on revenue collections 

due to its effect on consumption being felt in 2013 and 

perhaps to be felt in some parts of 2014 until a stabilization 

point is reached where a normal revenue growth rate will 

be seen. The current revenue growth is mainly driven by 

high consumption arising from the 2012 revenue policy to 

cut taxes. It is clear that the multiplier effect of tax cuts is 

boosting current revenue growth. 

High Consumption 

The expansionary fiscal policy of 2012 in the form of tax cuts 

of up to $53.1m has led to an injection of the same amount 

in the household sector as increased disposable income. 

FRCA has estimated that the tax cut will over time lead to an 

economic expansion of $212.0m and the aggregate spending 

in the economy will increase by about $265.0m. This translates 

into extra VAT revenue of about $35.0m and other revenues 

of about the same amount. The overall tax revenues created 

will be about $70.0m, which will be collected over a period 

of time depending on consumers’ spending patterns. Currently, 

increased domestic VAT and Fiscal duty has reflected some of 

the multiplier effect revenue. 

Improved Compliance and Debt Collection 

FRCA’s overall compliance has shown signs of improvement. 

The level of tax arrears are decreasing year by year over the 

last 3 years and based on the current trend it is expected that 

the tax arrears will be the lowest this year when compared to 

last 10 years. 

Improved Revenue through FRCA Reforms 

It can also be highlighted that FRCA is currently going through 

various reforms, which has lead the operational efficiencies 

leading to improved collections. The current PAYE as a Final 

Tax system for example has led to deployment of staff towards 

revenue collection works which has assisted in revenue 

collections. 

Tax on Income 

The PAYE and Corporate taxes are the major source of the 

income tax revenue. Cumulative to June, it is noted that the 

Corporate Tax collections exceeded the forecast by $2.6m. 

From 2012 a new system was introduced for Corporate Tax 

collections to ensure 90% of taxes are accounted for in the 

same income year. In 2013, this rule was changed to 100%. FRCA 

has also noted improved compliance in the administration of 

new system due to high penalty regime. The PAYE revenue 

grew by over 1.6% than that recorded last year. The growth in 

PAYE reflects the revenue gain from the removal of personal 

allowances and new taxpayers being registered due to 

growth in the economy. On average, monthly collections have 

increased by $1.1m when compared to 2012 figures. If this 

trend in collections continues then at the end of the year, we 

would expect PAYE to be higher than that recorded in 2012. 

The Capital Gains tax was over the forecast by $1.7m and is 

consistent with economic growth in the real estate sector. The 

Social Responsibility Tax collected, as at June was $5.2m as 

compared to $4.7m last year. 

Stamp Duty 

Consistent with the claims of increased consumption, stamp 

duty payments also reflect growing activity in the real estate 

sector. Property related transactions accounted for 45.4% of 

stamp duty collection in the month of June. This trend has been 

een from earlier months and correlates to the accelerated 

growth on commercial bank lending. Consumers are currently 

enjoying the attractive and low interest rates offered by banks 

on home loans. In addition to this, motor vehicle loan rates 

have also been slashed with increased demand reflective in 

bill of sale transactions. Following the review and gazettal of 

new rates, the Stamp Duty revenue has increased by 97.9% 

from $9.0m to $17.8m. 

Fringe Benefit Tax 

Owing to improved compliance, the number of taxpayers/ 

employers making a FBT return has increased leading to 

186.4% increase in FBT collections from $2.9m to $8.2m 

between 2012 and 2013 for the first 6 months period. 

Tax on Consumption 

VAT, Service Turnover Tax (STT) and new levies are essentially 

the main consumption taxes in Fiji. VAT collections are very 

buoyant as explained earlier with growth close to 20.0%. The 

STT collected as at June was $20.9m, which was about $2.0m 

higher than that recorded in the same period last year. The 

Departure Tax revenue has exceeded the forecast by $8.0m 

with a collection of $43.1m as at June 2013. 

Trade Taxes 

The continuous rise in the consumption level has also 

prompted an increase in demand for imports leading to more 

trade tax collections. The fiscal duty collection of $138.1m 

has exceeded the forecast by $8.8m and has been 20.5% over 

than that of 2012 for the first 6 months period. It is clear 

that the demand for both the investment and consumption 

goods has increased. Notably, the imports of motor vehicles 

have been more than double the amount seen last year with 

a growth of 60.9%, leading to a revenue collection of $13.3m. 

Although appreciation of the Fiji dollar against the Japanese 

Yen over the last few months must have enticed more imports, 

it can be highlighted that such demand has been driven by 

increased demand for motor vehicles following easier credit 

terms offered by financial institutions. In terms of investment 

goods, the importations of capital plant and machinery has 

increased and these have also been due to low tariff and the 

incentive regime offered to the manufacturing sector such as 

accelerated deprecation provisions and zero fiscal duty. 

Duty Foregone 

The total duty foregone as at 30 June totaled $154.7m, 

recording a decline of $68.1m or 85.9% compared to June 

2012. Concessions given under Code 232 of the Customs Tariff 

Act consists of the current standing list of section 10 which is 

announced in the budget every year, concessions given for tax 

free region projects, trade agreements and ad-hoc requests. As 

of June 2013 the revenue foregone from ad-hoc concessions 

was $3.3m, a growth of 70.8% compared to the same period 

last year. Most of the goods that were granted approval for 

ad-hoc concessions were for machinery and mechanical 

appliances. 

Fiscal Duty by Duty Bands 

Cumulative to June 2013, all duty bands, recorded a growth in 

erms of imported value compared to the same period in 2012. 

The following are the observations on Fiscal duty collections:

9 

• The VFD on which duties were applied to grew at a rate 

of 23.5%; however the growth on duty collected was 

only 2.4%. This reflects a large chunk of imports being 

imported under the zero band categories. 

• Duty collections from the 5%, 15% and specific bands 

declined between 2012 and 2013. 

Tax on Domestic Production 

The excise duty on the production of cigarettes, beers, sprits 

and alcohols is one of the main taxes imposed on domestic 

production. Following the increased in the excise duties by 

10%, the excise duty revenue has increased from $34.8m in 

2012 to $38.8m in 2013 for the first 6 months period. 

Tax on Natural Resources 

The Water Resource Tax is one of the taxes imposed on the 

extraction on the underground water. The revenue collected 

from this tax as at June 2013 was $13.5m against $13.1m 

collected last year. Accumulated fish levy collection as at June 

was $0.2m, lower by 78.1% over last year’s level and is below 

the cumulative forecast by $0.4m. 

Visitor Arrivals and Tourist VAT Refund Scheme (TVRS) 

Visitor arrivals cumulative to June increased by 1.4% against 

the same period last year while departures had increased by 

27.0%. Cumulative to June, Departure tax collections amounted 

to $43.1m, higher by 17.3% than that recorded last year and 

were above the cumulative forecast by $0.2m. Cumulative to 

30 June, total TVRS refunds processed amounted to $2.0m, 

higher by 33.1% than that processed in the same period last 

year. 

Tax Arrears and Collection 

Tax arrears as at June 2013 totaled $89.4m, lower by 12.4% 

compared to that recorded in the previous month. Accumulated 

tax arrears as at 30 June 2013 was also lower by 29.4% 

compared to the comparable period last year. Cumulative tax 

arrears collected as at June 2013 totaled $34.0m, higher by 

72.1% than that collected in the same period last year and 

exceeded the targeted level by $9.0m. 

A new initiative introduced in Debt Management in 2013 is the 

Current Debt Call Center, whereby two to three telephone call 

reminders are made to debtors before due dates, reminding 

them for full settlement of tax debt or engaging into timeto-pay 

arrangements to effectively settle their liabilities. This 

concept is proving beneficial for FRCA in its effort to prevent 

debt turning arrears and minimising the possibility of these 

debts falling into the aged debt category. This new initiative 

has resulted in cash collection of $11,856,066.55 from current 

debts which are debts not yet due falling between one to 

thirty days. 

Outstanding VAT Refunds 

The total outstanding VAT refunds as at 30 June 2013 was 

$58.6m. Of this balance, 13.2% is for those in the periods 

1994-2009; 24.0% for 2010 to 2012; and 62.8% for 2013. Total 

outstanding VAT refunds at the end of June 2013 increased by 

15.0% compared to that recorded in the month of May and 

increased by 169.6% when compared against the same period 

last year. 

Staff Costs 

The Base salary cost for 810 staff was around $19.6 million 

or $21.4 million including 8% FNPF and 1% FNU Levy. The 

majority 81.3% is paid for operations (Tax (44.1%) and 

Customs (37.2%) while 18.7% is for administration Corporate 

support functions. Unutilized annual leave liability was 

around 55.9% ($1.0m) out of the $1.8m liability for the year. 

Leave Schedules and contractual conditions for maximum 6 

days carried forward annual leave will ensure a minimal carry 

forward liability into the following year. 

Housing Bond Recovery 

With the change in the housing allowance to a cash-up 

arrangement in 2012, outstanding housing loan bonds with 

Landlords are being pursued through the Small Claims 

Tribunal. A total of 70 cases for recovery of $32,660 were 

lodged and 38 cases closed with a recovery of $16,438 . 

Training Costs (Overseas and Local) 

Overall cost of training remained low at $31,663 as the 

majority of staff training are partially or fully funded and 

sponsored training. 

The Customer Service Centre 

at Nasese, Suva.


Critical Success Factor: Customer 

• Seek excellence in every aspect of our interaction 

Sigatoka and Rakiraki Offices begin Operations 

These two offices were officially opened by the Prime Minister 

and Minister for Finance, Commodore J.V. Bainimarama on the 

25th of January. Stakeholders at both towns were invited to 

join in the celebration. 

It is noted that the two offices had started operating in the 

last quarter of 2012. Now the offices have the full staff 

complement required to serve customers at these areas. 

Automation of Tourist VAT Refund Scheme 

The Tourist VAT Refund Scheme (TVRS) was announced by the 

Prime Minister and Minister for Finance as part of the 2010 

Budget Policies. The scheme came into effect on 1 February, 

2010 and allows tourists to claim a refund (subject to certain 

conditions) of VAT paid on goods purchased in Fiji and taken 

out of the Nadi International Airport and Suva Wharf. From 

July 2013, automatic payments will be made for VAT refunds 

to tourists under the Tourist Vat Refund Scheme. When they 

leave the country, the money would be deposited into their 

bank Accounts. This will eliminate the need to queue at the 

ANZ BAnk counter at the Nadi International Airport and Suva 

Wharf. This will also enable easier reconciliation for FRCA and 

will also reduce fraud cases. 

For ease of administration and easier access and closer 

working relationships with retailers, the Customs Revenue 

Collection section has taken over the administration of the 

Tourist VAT Refund Scheme from the Research Policy & 

Planning Development Unit (RPPD), with effect from Friday 

1st March 2013. 

Learning from the Best in the World 

The Board Chairman, Mr. Ajith Kodagoda and Chief Executive 

Officer, Mr. Jitoko Tikolevu, visited the Singapore Customs in 

February 2013. They met Mr. Fong Kian, Director-General of 

Customs, and other senior Customs Executives. The purpose 

of the visit was to extensively discuss the learning’s from 

Singapore on how to improve the services to business 

houses and visitors to the country. It is a well known fact 

that Singapore has one of the most if not the most efficient 

Customs Authorities in the world. The turnaround time of 

Customs entries and documentation relating to import and 

exports, is only a maximum of 10 minutes in comparison to a 

minimum of 48 hours in Fiji. 

FRCA is looking at the possibility of introducing similar 

incentives to assist Business houses who use Fiji as an export 

hub to the region. Subject to certain guidelines, this would 

entitle genuine businesses to import any goods to Fiji and 

then use approved warehouses for transit and then re-export, 

without having to pay any VAT, thus encouraging the export 

hub concept, and assisting with cash flow as no funds would 

be tied up in VAT payments. The Singapore Customs reiterated 

their commitment to assist us in any way possible in the 

reform process. 

New Customs Valuation Guideline launched 

To make assessments and valuation easier, provide more 

efficient service to traders and promote compliance, a Customs 

a valuation guideline was developed and launched by the 

Chief Executive Officer, Mr. Jitoko Tikolevu in February 2013. 

The objective of the guideline is to equip Customs Officers 

with the knowledge and tool of analysis and assessment of 

Valuation risk. The guideline aims to identify and assess the 

risk indicators, which are those factors that can increase or 

lower the risk level to revenue and border protection. The 

guideline can also be used to highlights ‘Import trends’ which 

assists in effective profiling of traders. 

FRCA and Land Transport Authority (LTA) work hand in hand 

FRCA and the LTA have strengthened their partnership by 

working hand in hand in providing superior services to 

members of the public. 

This was after a workshop attended by both parties in March 

2013. The FRCA Customs officers and LTA officers participated 

in this one day workshop aimed at working in collaboration 

to facilitate trade in the country. The workshop discussed the 

need for both bodies to collaborate in order to fulfill demands 

and come up with mitigating factors and also the fact that 

both Authorities have a social responsibility to the public in 

ensuring that imported vehicles meet the required standards. 

Taxation Roadshow 

The Taxation Division with the assistance of the Commissioner 

conducted an overall Taxation Awareness on the Draft Income 

Tax Decree (ITD) 2013. The presentations delivered also 

included discussion on the PAYE as Final Tax and the New Tax 

Incentives for 2013. The Taxation Awareness program began 

in the Western Division followed by the Central and Northern 

Division. 

Taxation Revenue (Customer Service Centre) 

The Revenue Collection Section has various functions to 

ensure its targets are met. These include: daily deposits of all 

taxation receipts into the Government Consolidated funds; 

uploading of all Tax information in the FRCA website and 

conduction of taxpayer education and awareness programs. In 

addition, the Section also ensures that Gold Card services are 

delivered to Gold Class taxpayers, annual budgetary revenue 

measures are legislated and Standard Operating Procedures 

(SOP) and processes tested in the first quarter of every year. In 

their attempt to enhance customer service and ensure accurate 

and timely processing of all types of tax returns in the first 

half of 2013, the Customer Service Centres processed 5117 

applications for tax clearance, 19277 for TIN registrations and 

44348 for lodgment.

11 

The Prime Minister of Fiji and the CEO of FRCA 

cutting the cake on the occassion of the official 

opening of the new FRCA Sigatoka office. 

FRCA and Fiji National Provident Fund (FNPF) Joint Identity 

Card (JID) 

FRCA and the FNPF began issuing joint identity cards from 

July, 2013. The joint ID card has been primarily designed for 

convenience to benefit taxpayers and FNPF members. The card 

will ease current requirements needed for most financial and 

legal transactions that include the demand for TIN letters and 

FNPF Membership cards. From July, all you need to produce is 

this card. An added major advantage is that the card can be 

issued by both organisations. The Fiji public can obtain this 

card from either FNPF or FRCA, instead of the current practice 

where we have to visit both FNPF and FRCA. FRCA will also 

phase out the issuing of TIN letters. FNPF will also eventually 

phase out its current cards and it will soon issue this card for 

new members. 

FRCA and FNPF will have a joint database, which will only 

contain the information required by both parties for the issue 

of the identity card. FNPF has already identified 200,000 

members who also have tax identification numbers. FRCA has 

over 700,000 taxpayers in its database. 

Simplified Export Processes 

In order to improve our service to exporters and facilitate the 

timely processing of export entries, FRCA has introdcued a 

simplified export procedure. 

Customs officers receive Fijian Host awards 

Fijians and international visitors travelling through Nadi 

International Airport experience firsthand the “Fijian Hosts” 

program. Supported by the eight organizations that are 

responsible for processing travelers at the airport, the Ministry 

of Tourism launched the Fijian Hosts program in September 

last year to award top-performing front-line staff at Nadi 

International Airport. Winners are selected on the basis of 

comment cards filled out by international visitors, and placed 

in Fijian Hosts kiosks located in the airport’s secured areas. 

In July, two hard working FRCA Customs officers at Nadi Airport 

were awarded Fijian Hosts of the Month for their excellent 

customer service to arriving and departing passengers. 

Rakesh Mudaliar and Mereani Naiveli were given their awards 

for Fijian Hosts of the Month for March and April respectively 

by the Permanent Secretary for Tourism, Ms Elizabeth Powell, 

at a presentation ceremony at Nadi International Airport. 

The Fijian Hosts program is designed to raise public 

awareness of the importance of the role of the teams who 

greet and farewell our visitors at Nadi International Airport, 

Fiji’s gateway, and their significant contribution to the tourism 

industry. 

From 1st of July 2013, all export entries with a total export 

value of FOB F$20,000 and above will no longer be required 

to submit an Export Licence.


Critical Success Factor: Environment and Community 

• Good working relationship with key stakeholders 

Government officials ensure National Security 

FRCA teamed up with Senior Government officials and signed 

a Memorandum of Understanding for the National Combined 

Law and Security Agencies group (NCLASA) with the ultimate 

objective of ensuring that all Fijians are safe and secure. 

The signing of the MOU will commit relevant government 

ministries and agencies to coordinate closely with each 

other to strengthen the various frameworks that looks after 

Fiji’s security and defence. This includes food security, border 

security, cyber security etc. The NCLASA MOU signed today will 

provide the necessary framework which will underpin sharing 

of information across organisational boundaries for national 

purposes. It will provide a paradigm shift in security circles 

from a “NEED TO KNOW to “NEED TO SHARE” basis. 

Intelligience Awareness in the Western Division 

The Lautoka Customs Intelligence Unit (LCIU) has organised 

a community awareness program in the Western Division 

in May 2013. The community outreach is aimed at raising 

awareness and educating the public on the roles of the FRCA. 

The program is targetted at building better relationships with 

our stakeholders who will in turn assist us in carrying out our 

duties. It is also aimed at hearing people’s views and concerns, 

and improve our processes if we need to. On the other hand, 

if members of the public understood our roles better, they can 

also assist FRCA curb corruption by reporting such activities. 

New Zealand Customs Boosts Drug Awareness 

The abuse of illicit drugs is a global phenomenon and affects 

almost every country, although its characteristics and extent 

may differ from region to region. 

A drug awareness seminar was organised by New Zealand 

Customs in Suva in June. The seminar was organised to 

improve the knowledge and skills of customs officers in 

detecting illegal harmful drugs and fulfil FRCA’s role to protect 

the community. The environment in the Pacific Island countries 

is conducive to the activities of high threat transnational 

crime groups that are present in this region. The region is 

being used as a transit route between Asia and Central and 

South America due to the expansion of transportation links 

thus providing a richer schedule of transport options for drug 

running operations. Like most countries in the region, capacity 

building was a great need for FRCA and we are thankful to 

the assistance provided by NZ Customs. New Zealand Customs 

also donated drug detection kits to FRCA and the Fiji Police 

Force. 

Green Initiatives and Paperless Environment 

Quick wins and cost savings include use of emails to avoid 

hard copy paper printing for HR correspondence includes 

savings on postage, using the stairs instead of lifts, turning of 

lights when not in use and compulsory during lunch hour and 

process re-design to avoid re-work. 

FRCA Corporate Officer Mr. Nacani Dreu speaks to Malake 

islanders about being vigilant in protecting the border and 

their children to safeguard them from illegal activities.

13 

Critical Success Factor: Internal Process 

• Complete projects on time and to budget. We finish what we start. 

• Promote a culture of getting things right, the first time, on time all the time. 

PSC Service Excellence Awards (SEA) 

As the sole revenue collector in the country, the Authority has 

no one to measure its performance against. It is therefore 

important that we participate in competitions such as the 

Service Excellence Awards organised by the Public Service 

Commission. Participating in the SEA assists the Authority in 

its effort to improve its processes and services. This year is the 

third year FRCA participated in the awards. The Authority is 

applying for a Prize level award this year. 

In 2013, a Service Excellence Committee was formed, chaired 

by the General Manager Corporate Services and supported 

by the FRCA SEA champion and change champions from the 

three divisions. This committee is tasked with implementing 

and administering the Service Excellence framework in FRCA. 

This involves carrying out awareness and training, drafting 

and finalising the FRCA submission, and generally advocate 

for service excellence and its principles within the authority. 

Employees of the organisation also attended the training for 

champions and evaluators. 

Administration of Tourist VAT Refund Scheme 

For ease of administration and easier access and closer 

working relationships with retailers, the Customs Revenue 

Collection section has taken over the administration of the 

Tourist VAT Refund Scheme from the Research Policy & 

Planning Development Unit (RPPD), with effect from Friday 

01st March 2013. 

FRCA Executives Relook at Future Plans 

The Fiji Revenue and Customs Authority needs to be efficient 

and consistent in its application of rules and laws. The Attorney 

General, Mr Aiyaz Sayed-Khaiyum who was a keynote speaker 

at a two day workshop for FRCA Board and Management 

reminded the workshop participants of the key role the 

authority played in the growth of Fiji’s economy. Mr Sayed- 

Khaiyum said it was therefore vital that FRCA employees of 

FRCA were aware of how businesses were run as well as have 

an understanding of the commercial world. The minister also 

emphasized the need to have quicker turnaround times in 

business processes giving Singapore as an example. 

The workshop was aimed at reviewing strategies of the 

organization for the next three years. It was an opportunity 

for the authority to relook at its strategies, identify areas of 

improvement and map out strategies for today, tomorrow 

and the future. The workshop included addresses from the 

Permanent Secretary of Finance, Mr Filimone Waqabaca, 

Reserve Bank of Fiji Governor, Mr Barry Whiteside and 

Pradeep Lal of G.Lal Company. The workshop also featured 

a presentation from the Public Service Commission on the 

Service Excellence Awards. 

Internal Assurance organises Risk Management workshop 

The Internal Assurance team organized a Risk Management 

workshop in March 2013. The objective of the risk management 

workshop was to equip participants with practical tools 

to establish enterprise wide risk management framework 

based on acceptable standards and best practices. The 

training employed hands on interactive case studies that will 

empower participants to develop, implement and monitor risk 

management frameworks for a simulated real life business 

environment. 

FRCA chairs MSG Customs and Quarantine Sub-committee 

meeting 

Progress towards improving the implementation of the 

Melanesian Spearhead Group (MSG) Trade Agreement on 

tariffs and customs related areas was the objective the of the 

MSG Customs and Quarantine Sub-committee meeting held 

from 18th- 20th March, 2013 in Port Vila, Vanuatu. 

The meeting was chaired by FRCA Chief Executive Officer 

Mr Jitoko Tikolevu and National Manager Customs Revenue 

Mr Kumar Sami Goundar. Senior Customs and Quarantine/ 

Biosecurity Officials from Papua New Guinea (PNG), Solomon 

Islands, Vanuatu and Fiji were also present at the meeting. 

Representatives from Secretariat of the Pacific Community 

(SPC) and the Pacific Horticulture and Agriculture Market 

Access (PHAMA) project attended the meeting by invitation. 

Tighter Border Security Control 

Security at the Nadi International Airport and all other entry 

or departure points in the country has been increased with the 

implementation of the Integrated Border Management System 

(IBMS). 

Operated by the Immigration Department, the new system 

will see efficient movement of passengers into and out of 

the country, increased monitoring of wanted persons and the 

systematic adoption of documentation into one system. As the 

organisation responsible for the Primary Line function at ports 

of entry, FRCA has assisted the Department of Immigration 

with the implementation of the new system. FRCA primary line 

officers have also undergone training in using the new system. 

Double Taxation Agreement with Qatar 

FIJI now has a Double Taxation Agreement (DTA) with the 

Government of Qatar. The agreement was signed by the head 

of the Fiji Government delegation, the Permanent Secretary 

for Finance, Mr Filimone Waqabaca and the Qatar Director 

of Public Revenue and Tax Department, Mr Moftah Jassim 

Al-Moftah. Fiji’s Ambassador to the United Arab Emirates, 

Mr Ravindran Robin Nair and the Fiji Revenue and Customs 

Authority Chief Executive, Mr Jitoko Tikolevu were also part of 

the Fiji delegation. Qatar is one of the richest countries in the 

world and the agreement will provide an opportunity for both 

countries to trade. 

Combating Tax Evasion 

Fiji has further strengthened its efforts to combat organised 

crimes and tax evasion with the introduction of the Proceeds 

of Crime (Amendment) Decree (No. 61 of 2012) in September 

2012. The Director of the Financial Intelligence Unit, Mr Razim 

Buksh said that the new “unexplained wealth” provisions 

enables the Court to confiscate any property or benefit that 

is owned or controlled by a person that cannot be reasonably 

explained in relation to the lawful income of that person. A


A taxpayer completes 

registration forms for TIN. 

person has “unexplained wealth” if the value of the person’s 

total wealth is greater than the value of the person’s lawfully 

acquired wealth. The value of the person’s total wealth is the 

total value of properties, including services, advantages and 

benefits that together constitute the person’s wealth. 

FRCA and relevant authorities now have additional powers 

to forfeit any undeclared income as “unexplained wealth”. 

The new “unexplained wealth” provisions are now in effect 

and law enforcement agencies are considering a number 

of cases that will be investigated. The mechanism is now in 

place for members of the public and businesses to report 

suspected cases of unexplained wealth to the FIU, FRCA or 

the Police. Informants will be subject to anonymity and strict 

confidentiality of information will be also maintained. 

Lodgment Enforcement, Data Cleansing and Amendments and 

Correspondence Control 

The Lodgment Enforcement Unit [LEU] follows up on the 

lodgment of outstanding returns for VAT, PAYE, Income Tax, 

and the like. As at 30 June 2013, LEU issued 30,469 demand 

notices which records a 93% increase compared to the same 

period in 2012. On the revenue impact, this has resulted in tax 

revenue of $25,781,512.73 representing a 215% increase in 

comparison to the revenue result of $8,176,368.79 achieved 

for the same period last year. 

This is a remarkable achievement and improvement from the 

Lodgment Enforcement Unit given the same level of resource 

allocation as in 2012. 

Data Cleansing Unit 

The Data Cleansing Unit is tasked to enhance data integrity 

by constant updating of taxpayer records to most current 

taxpayer information. A major project undertaken by the team 

in the second quarter was data cleansing for FRCA/FNPF ID 

Card. It took 3 weeks for 6 dedicated Tax Officers to update 

250,000 taxpayer records in preparation for timely launching 

of the Joint ID Card by July 8th. 

is tasked with timely resolution of amendment requests and 

objections to notices of assessment when substantiated with 

necessary documentary evidences. As at end of June 2013 a 

total of 2,569 amendments and objections requests with 

assessment value of $4,617,998.00 have been processed. 

FRCA Balanced Scorecard 2013 

The FRCA Board has approved the CEO Balance Score Card 

for 2013. General Managers and National Managers are now 

tasked to ensure that all line staff are fully aware of the 2013 

CEO Balance Score Card, together with the respective General 

Manager and Unit Score Cards and the operational framework 

for these. 

The CEO has encouraged all staff to have a “Can Do Attitude” 

which will ultimately drive and mould a “winning” Team FRCA 

that will deliver our Vision. 

Internal Assurance 

Internal Audit 

Internal Audit supports the Authority by focusing its efforts on 

audits with a business improvement, consulting or strategic 

focus, to ensure the alignment of business activities with the 

department’s strategic direction 

The routine audit coverage is slightly behind however the 

Internal Audit unti aims to update its required routine audit 

by the end of 2013. Internal auditors redeployed resources for 

the setup of the newly established Staff Tax Audit Unit. 

In addition to the routine audit the Internal Audit Unit has 

been assigned to attend to a number of committees e.g FRCA 

Tender committee e.t.c. This is to provide independence and 

good governance advice to the FRCA Tender process. 

Within the past 6 months the Chief Internal Auditor had 

attended one overseas workshop on Fraud Risk Management. 

Progress on FRCA Routine Internal Audit 2013: 

Amendments and Correspondence Control Unit 

The Amendments and Correspondence Control Unit [ACCU]

15 

Description 

Quarter 1 2012 

Corporate Division 

Quarter 2 2010 & 

2011 

Taxation Division 


2012 

West Audit 


2012 

Customs Division 

Audit Management 

Committee 

Office of the Audit 

General Report 

Special Audit 

Request 

Remarks 

Field audit completed and the report 

has been presented to the Audit 

Board meeting 


has been presented to the Audit 

Board meeting 


has been forwarded to Executives for 

Management Comments. 


due to be finalized and this will be 

presented in the next Audit Board 

meeting. 

Internal Audit continuously conduct 

follow up on material audit issues 

and when required provide consultant 

advice for Executive Management’s 

consideration 

Facilitate OAG personnel during their 

field audit and consolidate Authority’s 

comments on audit issues raised. 

Upon specific request of CEO’s office 

Internal Audit Unit also assist ESU in 

conducting preliminary investigation. 

Additionally the Internal Audit is also working with Stamp 

Duty in the setup of untapped revenue streams. 

Staff Tax Audit Update 

The staff Tax Audit is a sanctioned special task required by 

the FRCA Board with the objective of ensuring voluntary tax 

compliance of all FRCA Staff. 

There are two senior Internal Auditors within the existing 

team redeployed to conduct the required staff tax Audit. Staff 

Tax Audit Policy was developed and endorsed by the Audit 

Board Committee. The Policy provide administrative guideline 

and delegations of authority under the Income Tax Act for the 

conduct of Tax Audit by IAS staff. FRCA staff in the conduct of 

Staff Tax audit are treated similarly to a normal Taxpayer and 

therefore have the same rights under the Income Tax Act. 

The team has conducted third party searches necessary for 

staff Tax audit and challenged to complete tax audit of all 

executives before end of the year. 

The vacant positions for Senior Internal Auditors are currently 

being filled. The new Senior Internal Auditors are expected to 

add significant value to the Authority in consideration of their 

knowledge and experience. 

Ethical Standards Unit (ESU) 

The Ethical Standards Unit performs the following functions 

for the Authority: 

• Develops and implements an ethical code of conduct 

in compliance with the FRCA Conduct & Discipline 

Regulations 2002. 

• Identify and investigate corrupt activities within the 

Authority. 

• Respond to complaints registered against employees for 

non-compliance with the Code of Conduct. 

• Conduct special investigations required by the office of 

CEO and the Board. 

• Unit also carried out other duties as assigned by the CEO 

such as working closely with Fiji Police Force, FICAC to 

assist them in investigation, Money laundering cases, 

criminal cases and other fraudulent and illegal activity. 

By June 2013 a total of 60 new cases were opened and 5 

pending cases from 2012 were investigated for offences 

related to breach of FRCA Conduct and Discipline regulations 

and other matters referred from CEO’s office. 

A total of 24 more cases were registered and investigated in 

the period January to June in 2013 compared to same period 

in 2012. Of the total of 60 cases, 2 cases were handled by 

Fiji Police Force after internal investigations, 4 cases were 

referred to Tax audit and one file to Customs investigation 

Branch. A total of 16 case files were closed after investigation 

was completed. A total of 6 officers were terminated from the 

service in the first half of this year. 

The ESU unit also assists other Divisions in FRCA via value 

adding and capacity building for Customs & Tax related 

investigations matters. ESU also finalized some of the revenue 

leakages cases from 2012 in the first half of the year and 

collected penalty sum of $126,000.00 and amendment fee 

amounting to $32385.90. 

Risk Management 

The Risk Management Unit facilitates the administration of 

risk management activities in the authority. The unit assists 

various sections in identifying new risk and continuously 

monitors the progress of the implementation of approved risk 

treatments. This is done through the half yearly review for 

Suva office and annual review for outer ports. Additionally, the 

unit is actively involved in other value adding activities such 

as the Business Continuity Plan project and Service Excellence 

Award Evaluation. 

Tabulated below are summaries of work covered by Risk 

Management Unit: 

Description 

Risk Register 

Review 

Risk 

Management 

Steering 

Committee 

Meeting 

Risk Training 

Business 

Continuity 

Plan – Project 

Remarks 

Review for Suva Customs and Taxation 

is completed. Divisional meetings with 

relevant executive management are yet 

to be organized to discuss risk treatments. 

Currently reviewing corporate risk register. 

2 meetings convened so far to update 

FRCA Executive management on the Risk 

management Progress and way forward. 

The Risk Management unit together with 

training section organized Enterprise Risk 

Management training for FRCA staff. This 

training was conducted by Mr. Rusco Bavon 

from FNU in February 2013. 

Senior Risk Officer is the secretariat for the 

BCP committee. 

A draft BCP document has been compiled by 

NMIA and circulated to the BCP committee 

members for comments. BCP document to 

be finalized by end of August 2013.


Description 

Nasese 

Foreshore 

Joint Tsunami 

Evacuation 

Plan 

Remarks 

Risk Officer is part of the Nasese Foreshore 

Joint Tsunami Evacuation Plan Committee. 

The committee has agreed for FRCA to 

develop an evacuation route from the 

back of the FRCA Nasese Complex into the 

Police Academy compound for our staff to 

proceed to the evacuation point as this is 

a shorter route. 

ESU Files 

Legal 

Drafting 

Customs IRS Opinion 

8 13 5 28 39 

We have closed the following files 

DMU LEU Customs ESU Tax 

Tribunal 

Legal 

Drafting 

815 2 2 4 26 5 

New Risk Identification – Various sections are to identify 

emerging risks and register it with Internal Assurance Section. 

This can be done during the reviews or at any point in time. 

It has been noted that sections hardly identify new risks. Most 

of the emerging risks are identified by the Internal Assurance 

Section either through ESU investigations or Internal Audit. 

FRCA Extreme & High Risk Summary 

There are 8 (5 extreme and 3 high) risks that was pending 

from the 2012 Extreme & High Risk List. 

Records Management 

Work on clearing backlog filing and rearrangement of filing 

area has seen marked improvement in both on and off site 

storage. Archiving of records also continued 

Recruitment & Selection 

There were 35 staff appointed through the recruitment 

process with 26 new recruits (Customs(2), Corporate(3), Tax 

(21)) and 9 internal promotions Taxation(8), Corporate (1). 

Termination of Employment 

Four staff resigned with 3 Taxation staff migrating while 1 

Corporate staff joined a local training institution to facilitate 

his studies. Two support officers were deemed to have resigned 

for absence without approval for periods of 7 days or more 

and breaching the Leave Policy & Procedures. Five staff were 

summarily dismissed on ethical grounds in line with the Zero 

Tolerance Policy by the Board. 

Legislation 

The Legal Services section has the responsibility of drafting 

FRCA laws. The Legislation Unit liaised with relevant 

stakeholders within and outside of FRCA to achieve this 

purpose. Expert external consultant such as Professor Lee 

Burns were used by the Division to assist in the drafting 

process. 

The Legislation Unit, in 2013 focused on the consultation, 

drafting of laws in relation to Income Tax Decree; Revenue 

Measures for 2013; Stamp Duty, Customs Act & Regulations, 

Capital Gains Tax Decree, and Airport Departure Tax. 

The Draft Income Tax Decree is now with the office of the 

Attorney General for vetting and approval. 

Litigation 

In terms of litigation, we conducted several hearings in the 

Tax Tribunal and High Court. we have conducted have 4 

hearings before the Tax Court. These were all appeals from 

the Tax Tribunal where the Tax Tribunal ruled in favour of the 

Authority. Out of the 6 matters, 4 appeals have been dismissed 

and 2 awaiting judgments. 

The Division opened the following files from 1 January – 31 

July 2013: 

Economic Modeling & Analysis 

The Economic Modeling & Analysis Unit, which is part of 

the Policy Section, in the first half of the year continues to 

deliver its core functions in terms of finalizing the monthly 

forecasts in the beginning of the year, while also providing 

revenue analysis to the board in terms of the monthly Revenue 

Board papers. In doing so, the team continues to improve the 

standard of its revenue analysis, going in depth in providing 

economic explanations to the CEO and the FRA Board on the 

reasons for revenue performance in each tax category. 

The unit continues to facilitate data request received from 

stakeholders daily, and the demand for such data has grown 

significantly compared to previous years, since the demand for 

tax data has grown from our stakeholders. While it continues to 

provide weekly revenue reports, while it also works on having 

daily forecasts ready. It continues to represent the authority 

in the Macro-technical Committee, and in doing so provides 

the necessary data needed for the revision of the country’s 

Gross Domestic product. As year progresses on, the unit is also 

anticipating the challenge of the 2014 National Budget Works 

preparation, which is also a core function for the team. 

Research Planning and Policy Development 

An important function of the Unit is to ensure that FRCA 

meets all its statutory requirements as per the FRCA Act. This 

involves the drafting and finalization of the Corporate Plan, 

Annual Reports and Half Yearly Reports. The RPPD Unit has 

completed all the works on the Annual Report within the 

required statutory timelines. The draft Annual Report was 

submitted to the Minister for Finance on 30th April 2012 with 

unaudited accounts. The Unit is also part of various initiatives 

such as the Balance Scorecard and Performance Assessment, 

and the Service Excellence Awards. 

Taxation Revenue Services 

Similarly, there were 1577 cases for Capital Gains Tax received 

of which 1419 were processed from January to June this 

year. Of the number processed, 295 cases were payable. The 

Authority collected $5.2m in Capital Gains Tax which was 

over the forecast by $1.7m and is consistent with economic 

growth in the real estate sector. Stamp Duty payments also 

reflect this. Property related transactions accounted for 45.4% 

of stamp duty collection in the month of June. Additionally, 

motor vehicle loan rates were decreased dramatically with 

increased demand indicative in the bill of sale transactions. 

Stamp Duty received a total of 112,297 documents for the first 

six months of this year and collected $17.8m worth of tax. This 

was a growth of 97.9% for the same period last year. 

Customs Risk & Compliance 

The main focus of Customs Risk & Compliance whilst fulfilling 

its responsibilities of audit, investigation and gathering 

intelligence, is to solicit voluntary compliance through a 

partnership arrangement with stakeholders. However, in the 

event that dues cannot be collected for a certain period of 

time, Customs legislations are enforced to recover these dues. 

This function falls under the role of Desk Audit which is now

17 

risk based thus modifying the approach from volume based 

to blue lane profiling. To ensure that the Audit Compliance 

perspective is consistent and that targets are met, the role 

of field audit was further divided into three streams i.e.: (1) 

Concession, Recovery & Environment Compliance; (2) Trade 

Compliance (TFF, DSS, SPARTECA, PACER etc); and (3) Valuation, 

Warehouse, Gold Card & Company Audit. 

As a result of the above, in the first half of 2013 Customs 

Risk & Compliance collected $15.7m in revenue, $13.5m 

more than the same period last year. The Recovery Unit 

collected 82% of the total amount of revenue collected in 

2013 which is an overwhelmingly positive indication of the 

shift in approach that has taken place. However, the above 

change was implemented only in the Headquarters in Suva 

in the second half of 2012. It is hoped that a similar model 

will be implemented throughout the Authority by the end of 

2013, provided that necessary resources are allocated. Of the 

$15.7m collected in the first half of this year, Audit Compliance 

collected $14.3m and Investigation collected $1.32m. 

Taxation Audit & Compliance 

In 2013 the Audit Compliance Section was challenged with 

the target that has been set at $86m for the year. This was a 

64% increase from the 2012 audit compliance target which 

was at $52.4m. 

• Demarcation of threshold - The threshold demarcation 

was fixed as $50m VAT threshold for Small and Medium 

and Large and International. The Transfer Pricing, Fraud 

and VAT teams do not follow into this category. 

Audit Results 

As of end of June 2013 the section achieved the following 

results: 

Team 

Cases 

completed 

Value of 

Assessments 

raised ($) 

Cash 

collected ($) 

VAT 174 7,804,180.64 4,052,725.43 

Small & 

Medium 

Large & 

International 

Transfer 

pricing 

Fraud and 

Evasion 

269 12,156,597.73 6,389,648.66 

103 8,883,725.48 2,908,185.08 

6 921,222.04 6,648,057.91 

40 2,798,642.09 1,037,651.71 

Total 592 32,564,367.97 21,036,268.79 

Audit Framework 

• Industry Matrix - The industry matrix strategy was agreed 

to run the audit and compliance unit based on industries 

while not conforming to the accepted FSIC code. The 

reclassification was based according to historical audit 

experience of such industries. 

Staff in group discussions at 

a Compliance Workshop


Critical Success Factor: Employee Satisfaction 

• Recruit the right people, retain and engage staff. 

• Promote a culture that aligns with the Vision, Mission and Values of FRCA. 

Implementation of the Job Evaluation Study 

Arising from the approval of the recommendations arising 

form the Job Evaluation Study conducted in 2012 by Price 

Waterhouse Coopers, salary changes were implemented in 

early 2013. Adjustments were made to staff whose salaries are 

below the 80 percent PIR (Position in Range) within their new 

Job Evaluation Band and were effected on 01/01/2013 and 

backdated to 01/01/2012; those whose salaries were within 

the 80 – 120 percent PIR retained their current salaries. 

New recruitments and appointments in 2013 are being made 

in accordance with the 2012/2013 Salary Structure. 

Customs Officers receive Merit certificate 

As part of International Customs Day celebrations in 2013, 

a total of 20 customs officers received World Customs 

Organization (WCO) merit certificates. Certificates were given 

to these chosen ones for their immense contribution in the 

Customs Division in terms of Innovative ideas for customs 

organisations, liasing with Chinese passengers in Mandarin, 

developing customs database, 24 hour clearance service and 

modernisation initiatives. 

The theme for 2013 International Customs Day “Innovation for 

customs progress” is a reminder to all customs stakeholders 

of the challenges faced in our borders and how we can 

progress towards overcoming these obstacles through the use 

of innovative ideas and developments. This was the message 

conveyed by FRCA chief executive officer Mr Jitoko Tikolevu at 

this year’s International Customs day celebration. 

FRCA Executives tour branches 

The Executive management team toured all branches in the 

country meeting staff. The CEO, the General Manager Customs 

& Excise Jone Louie, General Manager Taxation Moala Nata 

and General Manager Corporate Services, Arieta Dimuri each 

addressed the staff members in branches across the country. 

The week-long “CEO Roadshow” in January started in the north 

with one day visits to both the Labasa and Savusavu branches. 

Next was Sigatoka, Nadi, Lautoka and Rakiraki. The last stop 

was in the old capital of Levuka. 

The CEO highlighted a number of issues, which include: 

• 2012 Performance and Results: staff were thanked for 

last year’s performance and results, and were informed 

of the 2013 revenue target of $1.9 billion. Staff were 

encouraged to work together and focus on improvements 

from the 2012 results. 

• ‘One FRCA, one organisation’: staff were reminded of the 

need to work as a team, and to improve their knowledge 

of the organisation, especially to have some basic 

knowledge of developments in their areas and those 

outside of their normal operational area. 

• Integrity and Honesty: the importance of maintaining 

integrity and honesty whilst performing duties was 

stressed to staff, as well as showing professionalism and 

respect for each other and to customers. 

• Customer Services: staff were informed that there has 

been a general reduction in complaints but staff were 

encouraged to continue to lift standards when it comes 

to customer services. 

• Medical Insurance: staff were briefed of the change in 

policy with regards to the benefit for medical insurance. 

• Family: staff were reminded of the importance of having 

quality time with families, as this would contribute to 

good performance and high productivity at the work 

place. Staff were also informed of FRCA’s zero tolerance 

policy on extra marital affairs. 

• 2013 Family Fun Day: staff were informed of the Sports 

Day that will be convened in Levuka in August this year, 

and that they should make an effort to attend. 

• Bainimarama Tournament: staff were requested to begin 

preparations for the 2013 Bainimarama Tournament so 

that FRCA can achieve better results this year. 

• Awards Night – staff were informed that this will be 

conducted this year to reward staff who have performed 

exceptionally well. 

360 Degrees Appraisal 

In April, the 360 Degree Appraisal began for 72 staff at 

Executive, Management and Port Supervisor level. They 

were assessed by their reporting line staff as well as their 

subordinates and other staff they work with. In order to ensure 

the exercise is carried out in a professional manner, FRCA 

engaged A.M Consultant Limited to undertake the training of 

FRCA staff. 

The Human Resources team together with Mr Abraham 

Simpson conducted the training at the FRCA complex training 

room for all staff. The assessment was carried out via an 

online form with full protection of each staffs confidential 

report. After the assessment’s were al completed, an analysis 

report was presented to each officer that was assessed and 

plans discussed for improvement. 

2013 Bainimarama Tournament launched 

FRCA together with other financial institutions hosted 

the launching of the 2013 Bainimarama Tournament. The 

institutions include 2013 hosts FRCA, Fiji National Provident 

Fund (FNPF), Reserve Bank of Fiji, Fiji Development Bank, 

Ministry of Finance and Office of Auditor-General. 

The theme of this year’s competition is ‘Unity and Teamwork’ 

and FRCA chief executive officer Jitoko Tikolevu reminded 

the participants that the theme relates to the competition 

enhance the healthy relationship within the financial 

institutions. 

Job Rotation Program 

The implementation of a job rotation program for executive 

ecretaries began in April 2013, with the first phase to being 

this year and the second phase in 2014. 

The job rotation program will allow personal and career 

development for the secretaries, assist to broaden knowledge 

and understanding of the different divisional funtions towards 

succession planning into higher roles and facilitate an ease in 

secretarial assistance and support services across FRCA’s three 

divisions.

19 

Human Resources Review Workshop 

In June 2013, the Human Resources unit, under the theme 

“Building Partnership and HR Relations” organized a workshop 

to review HR processes and services and plan activities for 

the year. Prior to the workshop, a questionnaire was sent to 

all FRCA staff and received a relatively good response from 90 

staff. The responses from the Questionnaire were tabulated 

and formed the basis of our workshop deliberations and SWOT 

Analysis. 

Staff Benefits 

Conversion of the Staff Medical Insurance Benefit to “Cash Up” 

into staff salaries at $1,200 per annum. Around 175 staff are 

being paid housing allowance totalling $0.6 million with the 

highest being paid to Customs operations at $0.4 million. 

Staff Recognition 

In-House Essay Competition “Innovation for Customs Progress” 

theme for 2013 International Customs Day and prizes 

sponsored by Oceania Customs Organisation. 3 staff were 

presented with Certificates of Achievement and cash prize 

money. 

Workplace and Tuberculosis were arranged for staff via 

the Ministry of Health. 

• Cervical cancer tests was also coordinated via the 

Ministry of Health for female staff at Suva Port. 

• Five staff were referred to a medical board to determine 

their health status and employment options after 

exhausting their 21 sick leave days entitltments, 

• The Fitness Wednesday health initiative continued with 

staff given time off work from 3.45pm to participate in 

health walks or Team activities as a proactive measure 

to health care. 

• The Biggest Loser Weight Loss Competition was held 

within the HR Team for 3 months to July, 2013. 

Staff Retirement 

Four staff (60 years of age (3), medical grounds (1)) were 

accorded a formal retirement farewell hosted by the Chief 

Executive Officer. 

Health & Safety 

• The Authority hosted the Official Opening of the 2013 

Bainimarama Tournament on 12 April 2013 

• Replenishment of First Aid Kits, Safety Wear and protective 

equipment for Port Officers was carried out; 

• OHS Water Supply for Suva Wharf was arranged; 

• Free Medical Health Checks and presentations on 

Workplace and Non Communicable Diseases, Stress in the 

A Senior Customs Officer receives a World Customs 

Organization Merit Certificate from the FRCA CEO.


Critical Success Factor: Innovation and Learning 

• Create an environment where our people are encouraged to meet their full 

potential and innovation is a daily activity. 

Capacity Building 

• The Fiji National University completed an Audit from 04- 

06/06/2013 on FRCA performance in the delivery of our 

2012 Training Prospectus Method “A” Grants Claim 

• The 2013 Staff Training Prospectus was submitted to FNU 

• A Secretarial Job Rotation programme was implemented 

involving the movement of five secretarial positions to 

assist broaden knowledge and understanding of different 

Divisional functions towards succession planning into 

higher level roles. 

• Staff job rotations were also implemented in HR and 

Records Management Unit to allow upskilling and overall 

work area knowledge. 

• 80 Managerial and Line Supervisory staff were assessed 

by around 380 staff under the 360 Degrees Appraisal by 

A.M. Consultants. 

• Induction Training was completed for 58 new recruits. 

• In-house Training provided by FRCA HR Training Officers 

was facilitated for Excel Intermediate Skills, Stress 

Management, Emotional Intelligence and Employee 

Motivation and Teamwork Training. The Feedback Survey 

overall ratings for the training remained at an excellent 

level. 

• In-house Specialised Training was also completed by 

Operation Technical Staff on Asset Betterment Statement, 

Joint FNPF/FRCA 

• Two Regional Trainings were conducted for Customs 

and Taxation staff – Pacific Development Management 

Programme facilitated by the Papua New Guinea Tax 

Authority and funded by the Australian Government with 

27 regional participants and World Customs Organisation 

Sub-Regional Workshop on Valuation Control via Post 

Clearance Audit (PCA) with 15 regional participants to 

complete the final draft on PCA Guidelines. 

• Specialised trainings were held including Primary Line 

Training by Immigration Department, Nadi, ASYCUDA 

Awareness Training, Savusavu, FICAC Corruption 

Prevention & Risk Management Workshop, Tax Policy 

analysis, Transfer Pricing Forum and Tax Treaties Special 

Issue and Network Training & Integration and Support 

• A special Customs historical display of artefacts, seized 

goods, uniforms, manuals, log books and publications was 

organised for International Customs Day. 

• Two staff were granted approval for full time studies on 

full pay to complete a first degree 

Human Resources Workshop 

The HR Team held a 1-day workshop to map out work strategies 

and improvements arising from a staff feedback survey. 

FRCA Hosts the 2013 Pacific Management Development 

Program 

The Fiji Revenue and Customs Authority with the Papua 

New Guinea Internal Revenue Commission hosted a two 

week workshop aimed at improving managerial skills of tax 

administrators in the region. 

From March 4 to 15, FRCA hosted representatives from Papua 

New Guinea, Tonga, Samoa, Kiribati, Solomon Islands and 

Vanuatu at the Nasese Complex for the workshop. The Pacific 

Management Development Program is aimed at enhancing 

general management and project management skills of 

employees. The two weeks training is designed to coach 

them to effectively manage people, processes and systems 

of their respective revenue agencies. The training also aims 

to provide direct benefits to participating revenue agencies 

by having participants complete a small project within their 

organizations, which will consolidate program learning. 

The program was also an opportunity for new Managers 

participating to enhance and gain the required skills to 

manage a team. 

Upon the completion of this program, the participants are 

expected to take on projects in their respective workplace 

and in the long run improve the procedures and processes 

which are currently in use. A total of twenty seven (27) middle 

managers from Pacific Islands Tax Administrators Association 

(PITAA) member countries participated in this program. 

WCO Sub-regional workshop- a success 

The Fiji Revenue and Customs Authority in conjunction with 

World Customs Organisation (WCO) and Oceania Customs 

Organisation (OCO) hosted a sub-regional WCO Workshop on 

Valuation Control via Post Clearance Audit (PCA). The workshop 

was attended by fifteen Customs Officer from ten member 

countries; Fiji, Kiribati, Palau, Tonga, PNG, Samoa, Solomon 

Islands, Timor Leste, Tuvalu and Vanuatu. The structure and 

content of the Workshop was based on a new programme 

being developed collaboratively by the WCO and participants 

who attended a WCO expert-accreditation event which took 

place in Japan last December. This programme was designed 

to assist Customs administrations in strengthening Customs 

valuation controls conducted after importation, primarily 

through PCA – acknowledged as the most effective means 

to control Customs valuation, as well as being an enabler of 

trade facilitation. 

The programme covers the principles of the WTO Valuation 

Agreement, recent instruments of the WCO Technical 

Committee on Customs Valuation, strategic planning for PCA 

and the operational conduct of PCA, including case studies.

21 

The operating grant 

was higher by 6.77% 

in the first half of the 

year compared to 

the same period in 

2012. 

FRCA has lowered 

Other Operating 

Costs by 48.56% 

in the first six 

months compared 

to 2012 

Financial Highlights 

FOR THE FIRST SIX MONTHS OF 2013


The Finance Section is responsible for managing the financial affairs of the Authority. 

OPERATING RESULTS 

The Authority experienced a net surplus of $2.75million for the six-month period ending 30 June 2013 compared to a net 

surplus of $2.84million for the same period last year. The slight decrease in the surplus amount is due to the following: 

1. Increased employee cost by 14.52 %; 

2. Increased property expense by 10.67%; 

3. Decrease in other operating costs by 48.56%; and 

4. Increase on operating grant income by 6.77%. 

Due to all the above factors the net surplus decrease by 3.17% compared to the same period in 2012. 

CAPITAL EXPENDITURE 

Additions to Property, plant and equipment has decreased by $403,203 excluding the Work In Progress (WIP) or by 65.97% 

compared to the same period in 2012. 

A number of capital projects are reflected as Work In Progress ($9.3m). These projects will be closed off as and when each 

project is completed. There was a increase in WIP by $220,672. 

NET ASSETS 

Net assets as at 30 June 2013 amounted to $40.28million, an increase of 16.32% compared to the same period last year. 

STATEMENT OF FINANCIAL PERFORMANCE FOR THE SIX-MONTH 

PERIOD ENDING 30 JUNE 2013 

June 30, 2013 

($ 000’s) 

June 30, 2012 

($ 000’s) 

REVENUE 

Grants from government 17,173,913 16,086,957 

Fees and charges 3,580,460 3,601,253 

Rental Income 196,590 161,621 

Other income 672,282 734,826 

TOTAL REVENUE 21,623,245 20,584,657 

EXPENSES 

Employee costs 14,263,464 12,183,801 

Administrative 931,356 1,202,941 

Other operating 768,401 1,493,708 

Property 2,076,395 1,876,174 

Depreciation 832,830 986,782 

TOTAL EXPENSES 18,872,446 17,743,406 

NET SURPLUS 2,750,799 2,841,251

23 

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 

June 30, 2013 

($ 000’s) 

June 30, 2012 

($ 000’s) 

ACCUMULATED FUNDS 

Opening balance 32,424 26,677 

Correction of Fundamental Errors 

Net Surplus/(Deficit) 2,750 2,841 

Asset Revaluation Reserve 5,108 5,108 

TOTAL ACCUMULATED FUNDS 40,282 34,626 

CURRENT ASSETS 

Cash at Bank 13,366 12,519 

Short term investments 29,311 23,725 

Receivables 2,014 3,772 

Prepayments 482 405 

TOTAL CURRENT ASSETS 45,173 40,421 

NON-CURRENT ASSETS 

Asset held as Investment 3,815 3,874 

Property, plant and equipment-net 15,470 13,960 

TOTAL ASSETS 64,458 58,255 

CURRENT LIABILITIES 

Creditors and accruals 2,411 2,552 

Provision 998 1,734 

TOTAL CURRENT LIABILITIES 3,409 4,286 

NON-CURRENT LIABILIITIES 

Grant received in advance 19,531 17,798 

Deferred grant income 1,236 1,545 

TOTAL NON-CURRENT LIABILITIES 20,767 19,343 

TOTAL LIABILITIES 24,176 23,629


A) VISION, MISSION AND VALUES & BOARD KPIS 

Our Vision: 

Our Mission: 

To be the premier revenue collection, border management and trade facilitation agency in the region. 

To be recognized as a leading contributor to Fiji’s economic, security and social programmes, through effectively 

collecting the majority of Government revenues, carefully protecting its border, facilitation of trade and providing quality 

advice to key stakeholders. 

B) Critical Success Fa 

FINANCIAL 

Strength risk manageme 

Managers. 

Fiscally responsible mana 

by all Managers 

OUR FRCA 

BALANCE 

SCORECARD 

2013 

Our Values: 

BOARD KPIS 2013 

Leadership, Results Focus, Continuous Improvement and Learning, Design Quality and Prevention, Partnership 

Development, Valuing Employees, One Organization. 

1. Meet government's expectations that FRCA's performance will steadily 

improve. Fully implement CAPEX Plan. 

2. Fully comply with all statutory reporting requirements. 

3. Maintain current levels of employee costs and FRCA's human 

capabilities will meet the changing needs of the business 

4. FRCA to operate more at the convenience, changing needs and 

expectations of stakeholders 

5. FRCA to be accountable for the effective use of its resources 

6. Effective Implementation of FRCA Reforms 

7. FRCA to conform to international standards in all areas of operation 

8. FRCA to maintain a competitive edge in areas of policy development, 

technical and legal specialities when dealing with domestic and 

international complexities 

9. FRCA to continue to uphold high levels of good governance and 

integrity 

INTERNAL PROCE 

Complete projects on tim 

budget. We finish what w 

Promote a culture of gett 

right the first time, on tim 

time. 

C) ORGANIZATION BALANCE SCORECARD 2013 

KPI 

No. 

Key Performance Indicator 

(KPI) 

Measure Target 2013 Out Perform Weighting 

% 

KPI 

No. 


(KPI) 

Measure 

BLOCK 1: FINANCIAL (20%) 

Block 2: CUSTOMER (10 %) 

Block 3: ENVIRONMENT 

AND COMMUNITY (7 %) 

Block 4: INTERNAL 

PROCESS (43 %) 

1 

2 

3 

Collect Tax and Customs 

Revenue for Government: 

Debt Management 

Meet/Exceed forecasted revenue for 

all revenue types 

Total Tax arrears (excluding 

Government debtors) as at 31 

December, 2013 

$1.852 billion for 2013 (6.7% more 

than 2012) 

Reduction in Debt Cash Collection of Tax arrears Minimum of $50m (from $45m in 

2012) 

$1.889 billion (2% above 

performance target) 

5.0% 

Not exceeding $100m at Dec 2013. Not exceeding $80m at Dec 2013 2.0% 

Minimum of $55 m (from $46.5m 

in 2012) 

4 VAT Refunds Reduction in VAT Refunds Below $16m by Dec 2013 Below $15.5m by Dec 2013 2.0% 

Ratio of Debt to Revenue for Ratio of collectable debt level to net less than 10% less than 9% 1.0% 

5 

Customs and Tax 

revenue 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

Revenue from Compliance 

Audits 

Reducing operational costs 

Collect revenue from tax and customs 

audit cases 

Implement measures to reduce 

operational costs 

Minimum of $102 million (from 

$52.4m in 2012) (Tax $86.0million; 

Customs $16 million) 

4 measures implemented by 

31/12/2013. (Increase by 100% over 

2012 Target) 

Zero Fraud Ensure Zero Fraud (Internal) maximum 3 cases (reduce from 

2012 target of 5) 

Cost of Collection 

Strategic Budget Planning 

Manage Risks at an 

acceptable level 

Customer Service 

Performance 

Improve Telephone Service 

performance 

Public Relations & 

Awareness 

Customer Service Standards 

and Charter 

Customer Service Awards 

Whistle Blowing Policy 

Public education and 

awareness 

Good working relationships 

with stakeholders 

Environmentally friendly 

operations 

Community Assistance 

programmes 

Fully comply with statutory 

requirements 

Maintain reasonable levels of Cost of 

Collection 

Realistic and cost effective budge 

plans 

Prioritize treatment of risks in Risk 

Register 

A joint approach in assessing and 

addressing internal control risks 

Carry out comprehensive and 

independent customer survey in 2013 

and implement improvements 

Reduction in Customer Complaints - 

Only Compliments on Standards and 

Service 

Website Usage 

Make presentations and media 

releases on FRCA's operations & 

relevant matters. 

Customer Service Standards drafted 

100% Compliance to service 

standards 

Implement a system for recognizing 

exceptional customer service by staff 

No of complaints and timeliness in 

resolving complaints 

Attend provincial/district meetings; 

Carry out Schools and Community 

awareness 

Compliance with MOU requirements 

Initiate innovative programs with key 

stakeholder groups 

Av 2.1 cents for every $1 collected 

(2012 - Average of 2.8 cents for 

every $1 collected) 

Spending within 2013 Budget Plans 

and 2014 Budget Plans set by Aug 


- Reduce all risks (Extreme, High, 

Medium, Low) by one level for 

50% (From 20% in 2012) of risks 

identified in the risk register 

- Implement endorsed audit 

recommendations within the 

approved timeline (same as 2012) 

Survey completed July 2013 (From 

April 2012 Target) 

Follow up survey to gauge 

improvement in November 2013; 5% 

improvement over June 2013 rating 

(same as 2012) 

Customer survey results - 80% 

addressed and ratified (NEW) 

Website is uptodate with Divisional 

posting uploaded within 1 working 

day of release. Increase in the No. of 

hits against the older website version 

Minimum 50 media releases per year 

(From 8 in 2012) 

Minimum 20 presentations in a year 

(From 8 in 2012) 

May 2013 (From June 2012 target) 

Sep 2013 (Same as 2012) 

System in place by June 2013 (From 

June 2012 target) 

80% of complaints addressed 

satifsfactorily within an average of2 

days of receipt 

All provincial meetings invited to; 

Min 10 school awareness (From 5 

in 2012) 

100% (same as 2012) 

3 per year (same as 2012) 

Minimum of $104.04 million (from 

$52.4m in 2012) (Tax $87.7million; 

Customs $16.3 million) 

6 measures implemented by 

31/12/2013. (Increase by 100% over 

2012 Target) 

maximum 1 case (reduce from 2012 

target of 3) 

Av 2 cents for every $1 collected 

(2012 - Average of 2.7 cents for 

every $1 collected) 

Spending within 2013 Budget Plans 

and 2014 Budget Plans set by July 


- Reduce all risks (Extreme, High, 

Medium, Low) by one level for 

60% (From 25% in 2012) of risks 

identified in the risk register 

- Implement endorsed audit 

recommendations within the 

approved timeline (same as 2012) 

Survey completed June 2013 (From 

April 2012 Target) 

Follow up survey to gauge 

improvement in November 2013; 

50% improvement over June 2013 

rating (from 10% in 2012) 

Customer survey results - 100% 

addressed and ratified (NEW) 

Website is uptodate with Divisional 

posting uploaded within 12 hours of 

receipt. 50% Increase in the No. of 

hits against the older website version 

Minimum 75 media releases per year 

(From 8 in 2012) 

Minimum 25 presentations in a year 

(From 8 in 2012) 

April 2013 (From April 2012 target) 

July 2013 (From June 2012 target) 

System in place by May 2013 (From 

May 2012 target) 

80% of complaints addressed 

satifsfactorily within an average of 1 

day of receipt 

All provincial meetings invited to; 

Min 15 school awareness (From 10 

in 2012) 

100% (same as 2012) 

5 per year (same as 2012) 

Support Green Initiatives 5 initiatives (same as 2012) 8 initiatives (same as 2012) 2.0% 

Intiate and drive community 

assistance programs 

1 Corporate; one each from each of 

the 3 divisions for the year (same as 

2012)1 

Submit statutory reports by due dates 1) Corporate Plan - 2013 to 2018 

and Statement of Corporate Intent 

(SCI) by 30 September, 2011; 

2) Half Year Report for 2012 by 31 

August, 2011; 

3) Draft Annual Report & Un-Audited 

Financial Accounts for 2011 by 30 

April, 2012, 

4) The Annual Report and Audited 


June, 2012. (same as 2012) 

2 Corporate (From 1 in 2012); two 

each from each of the 3 divisions for 

the year (same as 2012) 

1) Corporate Plan - 2013 to 2018 

and Statement of Corporate Intent 

(SCI) by 15 Sept, 2011; 

2) Half Year Report for 2012 by 15 

August, 2011; 

3) Draft Annual Report & Un-Audited 


April, 2012, 

4) The Annual Report and Audited 


June, 2012. (same as 2012) 

1.0% 

2.0% 

1.0% 

2.0% 

1.0% 

2.0% 

1.0% 

3.0% 

2.0% 

2.0% 

4.0% 

2.0% 

2.0% 

1.0% 

1.0% 

2.0% 

2.0% 

1.0% 

Block 4: INTERNAL PROCESS (43 %) cont’d 

25 

26 

27 

Efficiency of Information 

Technology Systems 

ASYCUDA World Project - bridging 

the gap between stakeholders 

(traders) to invest in the upgrade for 

compatibility 

Tax Portal 

FITS Replacement 

28 

DRP Offsite 

29 

Efficiency of Information E-payment for Customs 

Technology Systems (cont’d) 

30 FNPF/FRCA ID Card 

Service Excellence Awards Implementation of feasible 

31 

recommendations; 

Form Service Excellence committee 

Implement Budget Policies Decentralization of FRCA Offices. 

32 

33 

34 

Tax Portal 

Moving VAT back into a selfassessment 

operating environment 

35 New Income Tax Decree 

2011 Budget Policies - PAYE as Final Tax 

Implement in 2013 

36 

37 

38 

39 

40 

Implement Reforms in 

Customs 

Introducing self –assessment to 

Income Tax 

Implement Findings of Time Release 

Study 

Review of the ASYCUDA plan 

against Single Window concept 

Implementation of the SAFE 

framework of Standards 

41 Customs Legislation Review 

42 

43 

44 

45 

46 

47 

48 

49 

Border Control and Trade 

Facilitation 

Review and Standardize 

SOP's 

Records Management Unit 

Ensure effectiveness of 

Legal advisory services 

Reduce intervention levels and 

increase facilitation rate 

Centralized inspection yard for 

Customs 

Full implementation and utilisation 

of Ionscan machines 

Implement and fully utilise CCTV to 

facilitate security and monitoring 

Implement Canine Unit 

Ensure SOPs are in place and are 

current; Review Ciritical processes 

(Risk Profiling and Ruling System) 

Finalise approval for Secondary 

Offsite Storage 

Complete movement to new site 

Success rate for legal cases 

50 Office Refurbishment Nadi Office 

51 Suva Wharf 

52 

Audits 

Timely implementation of Internal 

Audit and Resolution of audit issues 

Timely implementation of External 

Audit (Previous financial year) and 

53 

Resolution of audit issues 

24 

Management of Staff Leave 

Implement planned approach to staff 

leave 

Maximum 6 days carried forward to 

next year per officer (same as 2012) 

Maximum 5 days carried forward to 

next year per officer (same as 2012) 

1.0% 

"Success is a journ

ctors 

nt, by all 

gement, 

CUSTOMER 

Seek excellence in every aspect of 

our interaction. 

ENVIRONMENT & COMMUNITY 

Good working relationship with key stakeholders 

SS EMPLOYEE SATISFACTION INNOVATION AND LEARNING 

D) SCORECARD RATING GUIDELINES 

100% 

Target met and EXCEEDED with Superior Results (Outperformance Target 

Achieved) 

75% Target met with Satisfactory Results (Performance Target Achieved) 

25 

e and to 

e start. 

Recruit the right people, retain and 

engage staff. 

Create an environment where our people are encouraged to meet their full 

potential and innovation is a daily activity 

50% 

Target not met due to external constraints beyond FRCA control. Critical area 

of consideration. 

ing things 

e, all the 

Promote a culture that aligns with 

the Vision, Mission and Values of 

FRCA. 

Go and see for yourself to thoroughly understand the situation. Understand 

what is happening on the ground 

25% 

Below 50% Performance Result. Target not met. Unsatisfactory performance. 

Critical area for consideration. 

0% Below 25% Performance Result. Target not met. Critical area for consideration. 

E) INDIVIDUAL ASSESSMENT 

Target 2013 Out Perform Weighting 

% 

All stakeholders on board by Sept 


Resolve Issues and Upgrade By 

Dec 2013 

Resolve Issues and set project 

scope by Qtr 4 

All stakeholders on board by July 

2014 

Resolve Issues and Upgrade By 

Sept 2013 

Resolve Issues and set project 

scope by Qtr 3 

1.0% 

1.0% 

1.0% 

Plan finalised by Sept 2013 Plan finalised by Dec 2014 1.0% 

Implemented by Sept, Awareness Implemented by June, Awareness 1.0% 

Conducted 

Conducted 

Jun-13 May-13 2.0% 

Achieve One level over 2012 award Achieve Two levels over 2012 

award 

2.0% 

Customer satisfaction survey 90% 

service satisfaction. Referrals 

to other centres (personal visits/ 

correspondences/telephones) 

minimised 

No of hits by Tax Agents. No. of 

Tax Agents that use the Portal 

Second Phase 90% completed by 


1st and second phase 90% 

implemented (2012 target) 

100% Completed. Zero Referrals 

to other centres (personal visits/ 

correspondences/telephones) 

minimised 

No of hits by Tax Agents. No. of 

Tax Agents that use the Portal 

Second Phase 100% completed 


Second phase 90% implemented 

(2012 target) 

1.0% 

1.0% 

1.0% 

100% completed by June 2013 100% completed by April 2013 1.0% 

SOP, Practice Statement, Guide & 

IT system in place. Consultations 

done.(Dec 2013) (From Dec 2012 

target) 



done.(Nov 2013) (From Dec 2012 

target) 

1.0% 



done.(Dec 2012/2013) 

Implement 80% Findings Identified 

Implement planned activities by 

80% 



done.(Nov 2012/2013) 

Implement 90% Findings 

Identified 

Implement planned activities by 

90% 

1.0% 

1.0% 

1.0% 

at least 25% at least 30% 1.0% 

Phase 1 and 2 completed Progress into Phase 3 1.0% 

Reduce to at least 50% Reduce to at least 40% 1.0% 

Consultancy done by Septemebr Consultancy done by August 2013. 1.0% 

2013. 

Apr-13 Mar-13 0.5% 

Dec-13 Oct-13 0.5% 

Establishment of the Unit (staffing 

and training) by Jan 2014 

Establishment of the Unit (staffing 

and training) by Dec 2013 (100% 

completed) 

1.0% 

50% (From 90% in 2012) 70% (From 100% in 2012) 1.0% 

June 2013 

Sept 2013 

May 2013 

Oct 2013 

1.0% 

90% (from 85% in 2012) 92% (From 90% in 2012) 1.0% 

VALUES ASSESSMENT (70 points) 

Max Score 

1 Leadership: We will set directions and create a customer orientation, clear and visible values and high expectations, 

and ensure the creation of strategies, systems and methods of achieving excellence and building knowledge and 

10 

capabilities 

2 Result Focus: We will focus on results that are guided and balanced by the interest of all stakeholders, using a balanced 

set of performance measures that offers an effective means to monitor actual performance, and to marshal support for 10 

improving results. 

3 Continuous Improvement & Learning: We aim to achieve the highest level of performance by adopting a well 

executed approach to continuous learning and improvement by incremental and breakthrough improvement and 

10 

adaptation to change that leads to new goals and /or approaches. 

4 Design Quality & Prevention: We emphasize on design quality, hence anticipating problems and waste prevention at 

the design stage. 

10 

5 Partnership Development: We will build internal and external partnerships to better accomplish its goals. 10 

6 Valuing Employees: We will continue to invest in the development of its workforce through education, training and 

opportunities for continued growth. In return FRCA has the right to expect high levels of productivity and integrity. 

10 

7 One Organization: Managers and staff will work as one towards the goals of FRCA 10 

BEHAVIORAL ASSESSMENT (30 Points) 

8 Teamwork: An outstanding team player contributes and ensures the effectiveness of the team/FRCA 10 

9 Punctuality and Attendance: Is a role model for punctuality and attendance to work and official engagements. 10 

10 Professionalism and Respect: Is a role model for professionalism and respect for all levels irrespective of staff 

positions. 

10 

TOTAL 100 

Individual Assessment Guideline 

TOTAL 

A OUTSTANDING REPORTS, EXCEPTIONAL PERFORMER 9 - 10 90 - 100 

B FAVORABLE REPORTS, VERY GOOD PERFORMER 7 - 8 70 - 89 

C AVERAGE WORKER, GOOD PERFORMER 6 - 7 60 - 69 

D UNSATISFACTORY WORKER, POOR PERFORMER (staff counseling is absolutely necessary 1 - 5 10 to 59 

ORGANIZATION BALANCE SCORECARD 2013 (cont’d) 

Block 5: EMPLOYEE SATISFACTION (10 %) 

KPI 

No. 


(KPI) 

Measure Target 2013 Out Perform Weighting 

% 

54 HR Development Plan Review of Division Structures Jul-13 Jun-13 2.0% 

55 

Job Evaluation Study Implement Job Evaluation Study and Full Implementation Feb 2013 Full Implementation Feb 2013 2.0% 

(Completed) 

Revised Salary Structure 

56 

Staff Climate Survey Conduct survey and implement Sept 2013 Survey Completed. July 2013 Survey Completed. 2.0% 

strategies towards improvement 

57 

58 

Implement Balanced 

Scorecard 

2013 scorecard developed and 

approved 

360 Degree Management Survey June 2013 results and report 

received 

Mar-13 Feb-13 2.0% 

Performance Improvement Plans 

tracked and improvements reflected 

by Nov 

59 Staff Recognition Staff 2012 Bonus Payment by June 2013 Payment by May 2013 2.0% 

Implement Staff Recognition System System designed by June 2013; System designed by June 2013; 2.0% 

60 

and awards night 

Implemented by Dec 2013 

Implemented by Dec 2013 

One formal recognition initiative One formal recognition initiative 

from each Division 

from each Division 

Health and Safety 

a Fit and Healthy workforce 

2 out of 3 3 out of 3 2.0% 

61 

- Family Fun Day and Awards Night 

- Bainimarama Tournament 

- Proactive Health measures 

62 

OHS Compliance against legislation 70% (From 60% in 2012) 80% (From 70% in 2012) 1.0% 

2.0% 

Completed By Dec 2013 By Nov 2013 1.0% 

60% Completed By Dec 2013 70% By Nov 2013 1.0% 

90% Completed By dates as per 

dates committed to in the Reports 

100% Completed By dates as per 

dates committed to in the Reports 

0.5% 

Management comments to be 

submitted by the dates outlined 

in the Report and 80% resolution 

completed as per dates commited 

to in the Reports. 

Management comments to be 

submitted by the dates outlined in 

the Report and 100% resolution 

completed as per dates committed 

to in the Reports. 

ey, not a destination.” 

0.5% 

Block 6: INNOVATION AND LEARNING (10 %) 

63 Quality Management 

64 

Capacity Building 

Setup Operational Guidelines and 

Implement Quality Teams to drive 

process mapping 

Transfer evaluation and learning 

65 Training Prospectus and Grant Claim 

66 FRCA Library usage 

67 Data Management 

68 

69 

E-learning 

Strengthen Data Management and 

Reporting 

Implement dashboards 

Full Implementation and usage of 

e-learning tools 

70 

Maximise usage of RTC facility and 

maintain standards at a high level 

Regional Training Centre 

(completed) 

71 Pool of experts 

Jun-13 May-13 0.5% 

"Back to office reports submitted 

within 7 days after training 

Reaction evaluation 6 months after 

training and 100% measured and 

all recommendations evaluated for 

implementation" 

80% TNA completed and 80% of 

the 2013 Prospectus implemented; 

At least 60% levy returned 

20% Increase in Staff usage and 

Library Implement 1 activity 

Jun-13 

At least 40% of Customs staff 

complete the four core modules and 

are certified 

Secure E-learning module for Tax 

and implement by Sept 2013 

At least 2 regional training in a 

year 

At least 2 WCO Regional Experts; 

Increase inhouse trained experts to 

15 from all three divisions 

"Back to office reports submitted 

within 7 days after training 

Reaction evaluation 6 months after 

training and 100% measured and 

all recommendations evaluated for 

implementation" 

95% TNA completed and 100% of 

the 2013 Prospectus implemented; 

At least 80% levy returned 

30% Increase in Staff usage and 

Library Implement 2 activites 

Positive user feedback on quality 

and reliability of information from 

the board 

At least 60% of Customs staff 

complete the four core modules and 

are certified 

Secure E-learning module for Tax 

and implement by June 2013 

At least 4 regional training in a 

year 

At least 2 WCO Regional Experts; 

Increase inhouse trained experts to 

20 from all three divisions 

1.0% 

1.0% 

0.5% 

1.0% 

1.0% 

1.0% 

2.0% 

1.0%


THE YEAR AHEAD 2013: 

BALANCE SCORECARD KEY TARGETS 

• Revenue Forecast is a total of $1.85 billion. 

• Cash Collection of Tax arrears targeted to be 

$50m. 

• Targeted collection from tax and customs audit 

cases of $102m 

• Implement measures to reduce operational costs. 

• Ensure Zero Fraud. 

• Maintain reasonable levels of Cost of Collection. 

• Work within government approved budget. 

• Prioritize treatment of risks in Risk Register. 

• Offically open new Offices in Sigatoka and 

Rakiraki. 

• Carry out a comprehensive customer survey. 

• Maximise usage of the new website. 

• Implement a FRCA-wide Customer Services 

Charter. 

• Initiate and drive Green Initiatives and 

Community Assistance Programs. 

• Fully implement the FRCA/FNPF Joint I.D. Card. 

• Progress in Service Excellence Award level. 

• Implement changes and new policies announced 

in the 2013 National Budget. 

• Commence a review of Customs Legistation. 

• Finalize the Disaster Recovery Plan and Secondary 

Offsite Storage. 

• Commence refurbishment projects for the Nadi 

Airport and Suva Wharf Offices. 

• Carry out the 360 Degree and Staff Climate 

surveys. 

• Pay out performance bonus to staff and 

executives. 

• Organize a FRCA Family Fun Day and participate 

in the Bainimarama Tournament. 

• Carry out the launch of the Bainimarama 

Tournament from the FRCA premises. 

• Secure an E-learning module for Tax. 

• Maximise usage of the Regional Training Centre 

and maintain standards at a high level. 

• Pool of experts for RTC. Have at least 2 WCO 

Regional Experts; increase inhouse trained 

experts to 15 from all three divisions.

27 

Fiji Revenue & Customs Authority 

Head Quarters: Revenue & 

Customs Services Complex 

Private Mail Bag, Suva 

Phone: (679) 324 3000 

Fax: (679) 331 5537 

Email: info@frca.org.fj 

www.frca.org.fj

REPORT 2013

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