Worldwide transfer pricing reference guide 2014

Fiji (continued)
Penalty relief
Shortfall penalties may be reduced by 10 percentage points if the person voluntarily discloses the shortfall prior to the earlier of:
• Discovery by the FRCA of the tax shortfall; or
• The commencement of an audit of the tax affairs of the taxpayer
Shortfall penalties may also be reduced if a taxpayer has a past record of “good behavior.”
Documentation requirements
There are no explicit requirements under Section 34 or any other provisions of the Income Tax Act for any particular category of
information to be included in transfer pricing documentation.
The Income Tax (Transfer Pricing) Regulations 2012 requires that a taxpayer must record in writing, sufficient information and analysis
to verify that it’s controlled transactions are consistent with the arm’s length principle.
The FRCA’s Guidelines indicate that a taxpayer’s main purpose in preparing and maintaining documentation should be to place the
taxpayer in the position where it can readily demonstrate to the FRCA that a transfer pricing method used to establish the taxpayer’s
transfer prices are consistent with the arm’s length principle in light of the relevant facts and circumstances.
Documentation deadlines
Documentation for transactions undertaken in a tax year must be in place prior to the due date for filing of the income tax return for
that year.
Statute of limitations on transfer pricing assessments
There is no specific statute of limitations applicable to transfer pricing assessments. Accordingly, the statute of limitations applicable to
all other assessments will also apply to transfer pricing assessments.
In accordance with the Tax Administration Decree the amendment of a tax assessment may be made:
• In the case of fraud, wilful neglect, or serious omission by or on behalf of the taxpayer, at any time; or
• In any other case, within six years of the date the FRCA served the notice of assessment on the taxpayer
Return disclosures/related party disclosures
There are no specific disclosure requirements. However, it is advisable to provide details of the following together with the income tax
return; otherwise the FRCA may disallow a deduction for the same:
• Payments to non-residents such as dividends, interest, management fees, “know-how” payments, royalties or contract payments made
In some instances the FRCA may require additional details before assessing an income tax return.
Transfer pricing–specific returns
There is no separate transfer pricing return required to be filed in Fiji.
Frequency of tax audit and transfer pricing scrutiny by the tax authority
Tax audits are undertaken at the discretion of the FRCA. The FRCA selects audit targets based on certain criteria and risk profiling which
include:
• Company incurring ongoing losses
• Lower than expected profitability
• Dealings with associates in tax haven jurisdictions
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