Worldwide transfer pricing reference guide 2014

Fiji
Taxing authority and tax law
Tax authority: Fiji Revenue and Customs Authority (FRCA)
Tax law:
• Section 34, Income Tax Act
• Income Tax (Transfer Pricing) Regulations 2012
• Fiji’s double tax agreements are also relevant tax laws in Fiji
Relevant regulations and rulings
The final Fiji Transfer Pricing Guidelines (FRCA Guidelines) were issued in 2012 and provide a guide to the application of Section 34 of
the Income Tax Act and Income Tax (Transfer Pricing) Regulations 2012. These guidelines are intended to provide an overview of the
framework within which the transfer pricing rules operate.
OECD Guidelines treatment
The FRCA adopts the positions outlined in the OECD Guidelines for multinational enterprises and tax administrations, and proposes to
follow these Guidelines in administering Fiji’s transfer pricing rules. Consequently, the FRCA Guidelines supplement the OECD Guidelines,
rather than superseding them and accepts that the OECD Guidelines should be referred to if more detail is required in relation to issues
arising.
Priorities/pricing methods
The FRCA accepts the most reliable method or methods chosen from the following:
• CUP method
• Resale Price method
• Cost Plus method
• Profit Split method
• TNMM
Transfer pricing penalties
In accordance with the Income Tax (Transfer Pricing) Regulations 2012 the following penalties are applicable:
• Failure to keep required transfer pricing documentation is an offence and the person is liable upon conviction to a fine not less than
FJD100, 000
In accordance with the Tax Administration Decree the following penalties are applicable:
• Failure to keep, retain or maintain accounts, documents or records as required under a tax law is liable:
• If the failure is knowingly or recklessly made, a penalty equal to 75% of the amount of tax payable by the taxpayer for the tax period to
which the failure relates; or
• In any other case, a penalty equal to 20% of the amount of tax payable by the taxpayer for the tax period to which the failure relates
• Making false or misleading statements:
• If the statement or omission was made knowingly or recklessly, a penalty equal to 75% of the tax shortfall; or
• In any other case, a penalty equal to 20% of the tax shortfall
• The amount of penalty imposed under the above mentioned cases is increased by 10 percentage points if this is the second application
of the penalties relating to making false or misleading statements or 25 percentage points if this is the third or a subsequent
application
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