Income Taxt Act [Cap 201] - Subsidiary Legislation

	Home \| Databases \| WorldLII \| Search \| Feedback Fiji Legislation

1. This Order may be cited as the Co-operative Societies Income Tax Exemption Order.

2. Subject to the provisions of this Order, the income of any co-operative society which is registered under the provisions of the Co-operative Societies Act is hereby exempted from liability to income tax for a period of 5 years from the date of registration or, in the case of deferment, from the date upon which notice of deferment was issued by the Registrar of Co-operative Societies.

3. A co-operative society shall not be entitled to exemption under the provisions of this Order where-

The interest payable on the Public Purposes Loan raised under the provisions of the Public Purposes Loan (1929) Ordinance to persons not resident in Fiji shall be wholly exempt from income tax.

The interest payable on the Public Works Loans raised under the provisions of the Public Works Loan (1932) Ordinance and the Public Works Loan (1934) Ordinance to persons not resident in Fiji shall be wholly exempt from income tax.

The interest payable on the Fiji External Loan No. 1 of 1968 raised under the provisions of the Specific Loans Ordinance, 1967, shall be wholly exempt from income tax.

The interest payable on the Fiji External Loan No. 2 of 1969 raised under the provisions of the Government Loans Act shall be wholly exempt from income tax.

The interest payable on the loan of $A2,250,000 by the Government of Nauru to the Government of Fiji raised under the provisions of the Government Loans Act shall be wholly exempt from income tax.

The interest payable on the Fiji Government Australian Loan No 1 of 1971 raised under the provisions of the Government Loans Act, shall be wholly exempt from income tax.

(g) The interest payable on the Fiji Government Stock for $A2,780,000.00 raised under the provisions of the Government Loans Act to meet the balance of the consideration due to the Colonial Sugar Refining Company Limited under the provisions of section 2.2(b) of the Land Purchase Agreement dated 3 May 1971 made between The Colonial Sugar Refining Company of Fiji, shall be wholly exempt from income tax.

(h) The interest payable upon the loan not exceeding ten million American dollars arranged by Orion Pacific Limited and the Subject of an Agreement dated 6 May 1977, and made between the Government of Fiji of the first part the several Banks and Financial Institutions whose names and addresses appear in Schedule 1 of the Agreement of the second part and Orion Pacific Limited of the third part shall be wholly exempt from tax.

(i) The interest payable upon the loan not exceeding thirty-six million American dollars arranged by Continental Illinois Agreement Limited and the subject of an Agreement dated 9 November 1979 and made between the Government of the first part the several Banks and Financial Institutions whose names and addresses appear in the Agreement of the second part and Continental Illinois Limited of the third part shall be wholly exempt from tax from the date thereof.

(j) The interest payable upon the loan not exceeding five million American dollars arranged by The Tokai Bank Limited and the subject of an Agreement dated 22 May 1980 and made between the Fiji Electricity Authority of the first part the several Banks and Financial Institutions whose names and addresses appear in the Agreement of the second part and The Tokai Bank Limited of the third part shall be wholly exempt from tax from the date thereof.

(k) The interest payable upon the credit facility not exceeding thirty-four million, six hundred and seventy-five thousand Australian dollars provided by the Export Finance and Insurance Corporation of Australia and the subject of a Credit Agreement dated 28 August 1980 and made between the Government of Fiji and Export Finance and Insurance Corporation of Australia of 22 Pitt Street, Sydney, New South Wales, Australia shall be wholly exempt from tax from the date thereof.

(l) The interest payable upon the loan not exceeding twenty-five million American dollars arranged by Bank of New South Wales and the subject of an Agreement dated 19 April 1982 and made between the Government of Fiji of the first part the several Banks and Financial Institutions whose names and addresses appear in the Agreement of the second part and Bank of New South Wales of the third part shall be wholly exempt from tax from the date thereof.

1. This Order may be cited as the Income Tax (Cane Farming Income (Exemption) Order.

2. The income derived by a taxpayer, whether an individual or not, from cane farming shall be exempt from normal tax to the extent of 25 per cent thereof for a period of 5 years commencing on 1 January 1982, subject to the provisions sub-paragraph (c) (iii) of subsection (1) of section 16 of the Act.

1. This Order may be citied as the Income Tax (Farming Income) (Exemption) Order.

2. The income derived by an individual from coconut growing, rice farming, dairy farming, beef production and goat farming shall be exempt from normal tax for a period of 5 years commencing on 1 January 1981, subject to the provisions of sub-paragraph (c)(i) of subsection (1) of section 16 of the Act.

SECTION 16 - INCOME TAX (PRESCRIBED FARMING INCOME) (EXEMPTION) ORDER
___________

1. This Order may be cited as the Income Tax (Prescribed Farming Income) (Exemption) Order.

3. The income derived by an individual from any farming activity shall be exempt from normal tax to the extent of 85 per cent thereof for a period of 5 years commencing on 1 January 1982, subject to the provisions of sub-paragraph (c)(ii) of subsection (1) of section 16 of the Act.

SECTION 21 - ALLOWANCES FOR DEPRECIATING AND IMPROVEMENTS INSTRUCTIONS*
________

Part III - Initial Allowance for Plant and Machinery (Paragraph 12)
Part IV - Accelerated Depreciation Allowances for Specified Companies (Paragraphs 13 - 15)
Part V - Allowance for Capital Expenditure Relating to Fuel Economy and Alternative Sources of Energy (Paragraph 16 - 18)
Part VI - Allowance for Improvements (Paragraphs 19 - 21)
Part VII - Allowances for Buildings (Paragraphs 22 - 23)
Part VIII - Accelerated Allowance for Buildings Erected Between 1 January 1981 and 31 March 1986 (Paragraphs 24 - 30)
Part IX - Revocation (Paragraph 31)

1. These Instructions may be cited as the Allowances for Depreciation and Improvements Instructions.

2. In these Instructions, unless the context otherwise requires -

3. The Commissioner may allow depreciation (representing wear and tear during the year in which the income was derived) on any machinery, implement, utensils, rolling stock, buildings and other articles or plant owned by the tax payer and used by him for producing income during the year, such wear and tear not being of a kind that may be made good by repairs. No depreciation other than this shall be allowed unless specifically provided for in these instructions.

5. Depreciation allowances shall be allowed only in cases where double entry books of account, or other appropriate records, are maintained by or on behalf of the tax payer to the satisfaction of the Commissioner, and a copy of the profit and loss account and balance sheet, indicating the amount of depreciation written off, is submitted with the return of income each year.

6. Where an asset is used in the production of the income for part only of the income year in which it was acquired or completed, the depreciation which may be allowed for that year shall be -

This apportionment shall not apply to initial allowances. The date on which the asset was first used should be supplied when making the first claim on new or additional assets.

7. Where an asset has been acquired on or before 31 December 1979, and an initial allowance is permitted to be written off such asset under these Instructions, the ordinary depreciation for the first year may be claimed on the total capital outlay before the deduction of the initial allowance but, for the next and succeeding years, the annual depreciation allowance shall, in all cases, be upon the written down value at the end of the previous year of income unless otherwise specified in the case of a particular asset.

8. Where, after 31 December 1979, an initial allowance is permitted to be written off an asset under these Instructions, or a balancing charge is set off against the cost of a replacement asset, ordinary depreciation shall be calculated on the total capital outlay after the deduction of the initial allowance and balancing charge. Any balancing charge arising in respect of motor cars, station wagons, panel vans or other similar vehicles designed to carry loads of less than 1 tonne, or fewer than 9 passengers, other than those vehicles used primarily for carrying passengers or goods for hire or reward will not be available for set off against the cost of the replacement asset.

9. Where an asset is transferred to a person over whom the seller has control, or the seller is a body of persons over whom the buyer has control, or both buyer and seller are bodies of persons and some other person has control over both of them, depreciation allowable to the person shall exclude any initial allowance and shall be based upon the written down value in accordance with these Instructions at the time of the transfer in the accounts of the transferee.

10. Where an item of plant and machinery may be classified under more than 1 of the scheduled items it shall be classified in accordance with its preponderating use in the year of income.

11. In the case of property acquired otherwise than by purchase, e.g. by inheritance or gift, the allowance for depreciated to the person acquiring the property shall not be greater than that which would have been available to the deceased if he had lived, or to the donor if he had retained the property. The depreciated value of the property after allowing for notional depreciation up to the date of acquisition, shall be the basis of the allowance for depreciation.

13. Notwithstanding paragraph 4, the Minister may, by notice in the Gazette and subject to such conditions as he thinks fit, approve a company which proposes to incur substantial expenditure which he is satisfied is expedient for the economic development of Fiji, to receive the benefit of the following write off of such capital expenditure which may be claimed and allowed as an alternative to any other depreciation allowances provided either under these Instructions or elsewhere:

In each of any 5 out of 8 years consisting of the year in which such expenditure was incurred and the 7 succeeding years, the company so approved may claim as a deduction in calculating its total income for that year one-fifth of the capital expenditure incurred by it on the provision of buildings, plant and equipment the subject of the Ministerial approval, but excluding the purchase price of any land or any expenditure incurred on site preparation, or the purchase of any existing business premises or equipment or of any goodwill:

Provided that:

14. Where conditions are imposed under paragraph 13, the Minister may withdraw his approval at any time in the event of a breach of any of such conditions, and such withdrawal may, if considered appropriate, be made to operate retrospectively.

15. It is declared that, for the purposes of paragraph (a) of subsection (1) of section 21 of the Act, any amounts written-off under the authority of this Part shall be deemed to be depreciation.

PART V - ALLOWANCE FOR CAPITAL EXPENDITURE RELATING TO FUEL ECONOMY AND ALTERNATIVE SOURCES OF ENERGY

16. By Instructions to the Commissioner and subject to such conditions as he thinks fit, the Minister, in order to encourage economics in the use of fuel oil and its derivatives, may, on application by a taxpayer, approve the following allowances for depreciation in respect of capital expenditure:

18. It is declared that, for the purposes of paragraph (a) of subsection (i) of section 21 of the Act, any allowances approved under the provisions of this Part, other than the fuel economy investment allowance, shall be deemed to be depreciation.

19. The Commissioner may, for the purpose of arriving at the total income of the taxpayer for any year, allow to any taxpayer engaged in any agricultural pursuit a deduction in respect of any sum spent in that year by the taxpayer on capital improvements to land where the sum is spent on:

Provided that the taxpayer may opt to have the expenditure allowed during the year in which the expenditure was incurred and the next succeeding 4 years, such allowances not to exceed the total allowable expenditure incurred.

20. Notwithstanding the other provisions of these Instructions, if he is satisfied that the buildings or other constructions hereinafter specified will be used wholly and exclusively for the agricultural or pastoral pursuit of the taxpayer, the Commissioner may, for the purpose of arriving at the total income of the taxpayer for any year, allow the taxpayer a deduction in respect of any sum spent on such buildings or constructions in the year in which the expenditure is incurred, or, at the option of the taxpayer, in that year and the next succeeding 4 years, so long as the total amount of the deductions allowed shall not exceed the total allowable expenditure incurred. The buildings or other constructions in respect of which this concession shall be allowed are:

21. The write-off of capital expenditure under this Part may be claimed and allowed as an alternative to any other depreciation allowances provided in these Instructions.

22. Buildings, the erection of which commenced on or after 1 January 1946, built and let for residential purposes and used by the taxpayer for the purpose of producing income, may be written down as follows:

Brick, stone or concrete....................... 1¼ % on prime cost,

Entirely of wood ........................................ 2½ % on prime cost.

Other material ................................. Such rate as may be fixed by the Commissioner in the particular case:

Provided that, where part only of the building is let for residential purposes and used by the taxpayer for the purpose of producing income, only the part so let and used shall qualify for the allowance.

23. Buildings, the erection of which commenced on or after 1 January 1947, and which are used for agricultural, commercial or industrial purposes, including buildings so used by an employer for the purpose of housing or welfare of his employees, may be written down as follows: -

Provided that, where part only of the building is used for agricultural, commercial of industrial purposes, only the part so used shall qualify for the allowance, and no initial allowance will be permitted where buildings are used by an employer for the purpose of housing or welfare of his employees who are blood relatives or shareholders or blood relatives of shareholders of a controlled company. For the purposes of this Part-

PART VIII - ACCELERATED ALLOWANCE FOR BUILDINGS ERECTED BETWEEN 1 JANUARY 1981 AND 31 MARCH 1986

24. Notwithstanding Part VII and provided that the application is lodged with the Commissioner on or before 30 April 1985, a write off of capital expenditure may be claimed in respect of the capital expenditure incurred upon the construction of a building, the erection of which has been commenced between 1 January 1981 and 30 September 1985, which has been completed on or before 31 March 1986 and which is used for agricultural, commercial or industrial purposes, excluding any building (not being a multi-storey or a multi-unit residential building as hereinafter defined) designed to be used as a hotel or for residential purposes:

Provided that -

Subject to the foregoing, the write-off for the purposes of this paragraph shall be as follows:

In each of any 5 out of 8 years consisting of the year in which the building is completed and the next 7 succeeding years the taxpayer may claim as a deduction in calculating his income arising for that year from such building or from a new trade or business established in such building or from an existing trade or business which includes the letting or occupation of such building, one-fifth of the capital expenditure incurred by him on the erection of such building, but he shall not, however, be permitted to set off such deduction from his income in that year or carry forward any resulting losses as a deduction against his income in any subsequent year from any other trade, business or employment:

Provided that:

25. In order to qualify for relief in terms of this Part, it shall be required that the buildings in question are erected on behalf of the claimant by an independent building contractor under a general building contract. If the independent building contractor is either directly or indirectly under the control (as defined in section 2 of the Act) of non - residents, the capital expenditure will only qualify for this relief if such building contractor was actively engaged in construction work in Fiji as at 1 January 1976.

25A. If the buildings in question are not erected on behalf of the claimant by an independent building contractor under a general building contract, relief in accordance with this Part shall be permitted provided that the cost or value of construction of such buildings is certified by an independent qualified architect or engineer registered in Fiji and the cost of construction of such buildings is approved by the Commissioner.

26. Where there is a direct or indirect sale of shares in a controlled company as defined in subsection (2) of section 12 of the Act, and which company has as its principal asset a building which qualifies or has qualified for this relief, then it will be deemed that such proportion of the consideration recoverable from the sale of such shares as the Commissioner shall decide shall be the consideration for the building or part of the building, and the vendor of such shares shall be deemed an owner or part owner of the building and the provisions of proviso (k) to section 11 of the Act shall apply to him.

27. In the event of the sale of a partnership interest by a partner, either directly or indirectly, in any partnership whose principal asset is a building which qualifies or has qualified for this relief, it will be deemed that such proportion of the consideration recoverable from the sale of such interest of a partner as the Commissioner shall decide shall be the consideration for the building or part of the building, and, for the purpose of this paragraph, such partner shall be deemed an owner or part owner of the building and the provisions of proviso (k) to section 11 of the Act, shall apply to him.

28. It is declared that, for the purposes of paragraph (a) of subsection (1) of section 21 of the Act, any amounts written off under the authority of this Part shall be deemed to be depreciation.

29. The allowance permitted under this Part is an alternative to any other depreciation allowances provided under these Instructions or elsewhere.

30. For the purposes of this Part -

31. The Allowances for Depreciation and Improvements Instructions, published in reprint form at page 147 of Part II of the 1972 Laws of Fiji are revoked.

Item	(Straight Line) Prime Cost Rate	Diminishing Value Rate
(Note: - Rep = Replacements)
A

Accounting Machines....................................................	7	10
Adding Machines ......................................................	7	10
Aerated Water Plant....................................................	7	10
Air-conditioning Plant -
Room units......................................................	7	10
Central type (excluding ducting).............................	7	10
Aircraft ...................................................................	7	10
Aircraft Hangers.........................................................	3	5
Amusement Machines and Equipment -
Coin operated pool tables......................................	10	15
Juke boxes.......................................................	10	15
Merry-Go-Rounds..............................................	5	7½
Arc and Gas Welding Plant.............................................	5	7½

B

Bacon Curing Plant.....................................................	7	10
Baker's Plant -
General...........................................................	5	8
Slicing and wrapping machines..............................	10	15
Bedding, Linen, Crockery etc. (Hotels and Boarding Houses)...	Rep.
Bee-farming Plant (Beehives, storage tanks, wax pressures, etc)	Rep.
Bicycles-Motor..........................................................	10	15
Ordinary.........................................................	Rep.
Biscuit-making Plant....................................................	7	10
Boarding House Plant and Equipment -
Bedding..........................................................	Rep.
Carpets...........................................................	20	30
Crockery, cutlery, glassware and cooking utensils.........	Rep.
Linen.............................................................	Rep.
Boats, Ships, Lighters, etc.
Boats-Timber under 150 tonnes.......................................	71/2
Other vessels....................................................	5
Dredging barges................................................	7	10
Fishing gear.....................................................	Rep.
Lighters..........................................................	5	7½
Outboard motors Punts........................................	15	20
Refrigeration equipment & insulation of boats............	7	10
Tugs..............................................................	5	10
Boilers....................................................................	3	5
Boat and Shoe-making Plant -
Lasts.............................................................	Rep.
General plant...................................................	7	10
Bottles.....................................................................	Rep.
Box and Carton (Cardboard) Maker's Plant...............	7	10
Brewery Plant -
Casks-Stainless steel...........................................	7	10
General Plant....................................................	7	10
Pipes -
Condenser..............................................	5	7½
Other....................................................	2½	3¾
Bridges....................................................................	Rep.
Broom and Brush Manufacturing Plant -
Process Plant ...................................................	7	10
Building and Construction Industry -
Earth moving plant and heavy equipment -
Bulldozers, ditchers, excavators, graders, scrapers, tractors etc.......................................................	15	22½
General Plant-Compressors...................................	7	10
Concreting Plant - .............................................	7	10
Pumping units...................................................	15	22
Cranes-Mobiles.................................................	7	10
Derricks..........................................................	7	10
Loose tools and equipments...................................	Rep.
Electric, pneumatic tools......................................	7	10
Pumps............................................................	5	7½
Scaffolding......................................................	Rep.
Welding units, portable.......................................	7	10
Wheelbarrows...................................................	Rep.
Winches.........................................................	7	10

C

Canning Plant, Fruit, Vegetables etc.................................	5	7
Carpets -
In business places..............................................	20	30
In houses let furnished.........................................	10	15
In picture theatres..............................................	20	30
In hotel lounges.................................................	22½	33½
In hotel bedrooms...............................................	20	30
Casks-Stainless steel....................................................	7	10
Cement-making plant...................................................	7	10
Cinema Plant -
Projectors ......................................................	5	7½
Seating .........................................................	5	7½
Clothing, Manufacturing Plant -
Sewing machines...............................................	7	10
Other Plants ....................................................	7	10
Cold Rooms..............................................................	7	10
Computer Systems -
General..........................................................	15	20
Concrete Mixers.........................................................	7	10
Concrete Pipe Manufacturing Plant...................................	7	10
Confectionery Machinery..............................................	7	10
Crates .....................................................................	Rep.
Crushing Plant (stone)..................................................	7	10
Curtains and Drapes.....................................................	Rep.

D

Data Processing Equipment ..........................................	15	25
Dictaphones..............................................................	7	10
Dies -
General...........................................................	Rep.
Plastic Industry.................................................	Rep.
Distillery Plant (Gin, Vodka, etc.)....................................	7	10
Docks, Floating..........................................................	5	7½
Dredges ..................................................................	(see boats)
Driers -
Copra Vatas..........................................................	7	10
Copra Steam and heated.......................................	10	15
Copra Kilns......................................................	10	15

E

Electric Vacuum Cleaners.............................................	7	10
Engraving Plant.........................................................	5	7½

F

Fences.....................................................................	Rep.
Fittings in Shops.........................................................	7	10
Flour-milling Plant and Machinery...................................	7	10
Fork Lifts and front-end loaders.......................................	15	22½
Foundry Plant -
Converters and Furnaces......................................	7	10
Furnaces ........................................................	7	10
Ladles............................................................	7	10
Machinery and plant...........................................	7	10
Moulding boxes................................................	Rep.
Patterns..........................................................	Rep.
Plant and tools..................................................	7	10
Rolling mill engines...........................................	7	10
Furniture and Fittings...................................................	7	10
Furniture-making Plant.................................................	7	10

G

Galvanising Plant .......................................................	7	10

H

Helicopters...............................................................	12½	20
Hire Cars..................................................................	12½	20

I
Ice-making Machinery -
Compressors....................................................	7	10
Condensers......................................................	7	10
General machinery.............................................	5	7½
Ice moulds.......................................................	Rep.

K

Kilns -
Timber drying...................................................	7	10
Tobacco.........................................................	7	10

L

Lathes -
Engineering works.............................................	7	10
Wood working plant...........................................	7	10
Laundry Plant -
General Plant...................................................	7	10
Washing machines.............................................	7	10
Libraries -
Professional.....................................................	Rep.
Lifts and Elevators (excluding lift wells) ...........................	7	10
Locomotives.............................................................	7	10
Loose Tools..............................................................	Rep.

M

Materials and Handling Plant -
Containers (Transportable) -
General ..........................................................	7	10
On hire ..........................................................	7	10
Pallets ...........................................................	Rep.
Meat Works Plant......................................................	7	10
Milk Treatment Plant -
Bottling and Processing Plant................................	7	10
Refrigeration plant.............................................	7	10
Motor Garage Equipment -
Automatic car-washing machines............................	7	10
Bowser machines...............................................	7	10
Bowser tanks, underground...................................	7	10
Motor Vehicles, etc. -
Bulldozers.......................................................	15	22½
Buses.............................................................	15	22½
Cars -
Taxis, Hire and travellers' cars................................	12½	20
Other cars........................................................	10	15
Fork-lifts, front-end loaders...................................	15	22½
Heavy haulage vehicles........................................	15	22½
Lorries and trucks..............................................	15	22½
Tractors..........................................................	15	22½
Motor Vehicles Repairing Plant......................................	7	10
Motor mowers...........................................................	12½	20
Motors (Electric)........................................................	5	7½

N

Nail Manufacturing Plant..............................................	7	10
Neon Signs...............................................................	7	10

O

Office Machines and Equipment -
Accounting and adding Machines...........................	7	10
Cash Registers.................................................	7	10
Data Processing Equipment..................................	15	25
Dictaphones.....................................................	7	10
Duplicating machines..........................................	7	10
Furniture and fittings..........................................	7	10
Photo copying machines......................................	7	10
Typewriters......................................................	7	10
Oil Companies' Plant and Machinery -
Aircraft refuelling equipment.................................	7	10
Bowser tanks, underground....................................	7	10
Drums............................................................	Rep.
Pipe Lines.......................................................	7	10
Pumps, motors and control gear and fittings (apart from major units)....................................................	7	10
Tanks............................................................	7	10
Tankers..........................................................	15	22½
Oil Exploration Plant and Equipment -
Oil rigs (off-shore drilling) and ancillary equipment......	7	10
Oil search equipment used for geophysical surveys
General........................................................... Drilling plant and down-hole equipment ...................	15	22½
Seismic survey equipment....................................	15	½
Ovens-not otherwise specified...............................	10	15

P

Patterns -
Foundry.........................................................	Rep.
General..........................................................	Rep.
Photo Copying Machines....................................................	7	10
Piping from Irrigation and Stock Watering Purposes (external)................................................................................	7	10
Plant and Machinery (not otherwise specified).....................	7	10
Plastic Industry -	.
Dies............................................................	Rep.
General plant..................................................	7	10
Hydraulic presses, injection moulding and extrusion and bottle blowing machines.....................................	7	10
Poultry Processing Plant -
Conveyor systems and troughs...............................	7	10
Refrigeration plant and boiler.................................	7	10
Other processing plant................................................	7	10
Power Tools (hand-operated)..........................................	Rep.
Primary Production Industries, Farmers', etc -
Agricultural implements and plant ...........................	7	10
Bridges, wooden ...............................................	Rep.
Dairy farm plant -
Power ............................................................	7	10
Other.............................................................	7	10
Fences............................................................	Rep.
Irrigation plant and equipment -
Metal piping.....................................................
Other piping (including concrete channels, but not earth channels).........................................................	5	7½
Other plant...............................................................	7	10
Lighting plant (electric)................................................	7	10
Loose tools...............................................................	Rep.
Poultry farmers' plant -
Incubators .......................................................	7	10
Egg boxes and filters..........................................	Rep.
Fences, wire netted.............................................	Rep.
Tractors....................................................................	15	22½
Trailers.............................................................................	15	22½
Printers' Plant and Machinery -
Electronic engraving machines ..............................	7	10
Linotype metal..................................................	Rep.
Machinery .......................................................	7	10
Types ............................................................	Rep.
Projectors- Cinemas ....................................................	5	7½
Punts.....................................................................	See boats

Q

Quarrying Plant.........................................................	7	10

R

Refrigerators.............................................................	7	10
Rice Milling Plant.......................................................	7	10
Road-making Plant -
Road graders and rollers.......................................	15	22½
Rolling Stock -
Railway trucks..................................................	3	5

S

Sacks-Copra..............................................................	Rep.
Scaffolding...............................................................	Rep.
Scales (platform).........................................................	5	7½
Screen Printing-also driers.............................................	7	10
Security Systems (Camera scanning)..................................	7	10
Swimming Pools ........................................................	1¼	..

T

Tarpaulins................................................................	22½	33½
Tents ......................................................................	22½	33½
Tennis Courts ............................................................	5	7½
Timber Drying Kilns....................................................	7	10
Timber and Sawmilling Plant .........................................	7	10
Tramways-Portable......................................................	7	10

V

Vegetable and Fruit Canning Plant ...................................	7	10

W

Welding Plant............................................................	7	10
Wharves
Ferro Concrete..........................................................	2
Wood sheathed..........................................................	5
Wood unsheathed.......................................................	10
Wood composite................................................	5

The person for the time being holding the office of official Representative, Overseas Territories Income Tax Office, London shall be the United Kingdom Income Tax Agent for Fiji.

PARAGRAPH
1. Short title
2. Interpretation
3. Registrar of the Court
4. Office of the Court
5. Place of sitting
6. Notice of appeal
7. Entry of appeal and direction for hearing
8. Notice of hearing of appeal
9. Service
10. Amendment of notice of appeal
11. Attendance of witness under subpoena
12. Hearing of appeal
13. Fees of Court
14. Costs

3. The Chief Registrar of the Supreme Court of Fiji shall be the Registrar of the Court.

5. The Court may sit for the hearing of an appeal, or for the hearing of any interlocutory application incidental to an appeal, or at any place within Fiji which the Court, from time to time or at any time, may deemed convenient for the sitting.

6. - (1) Every appeal to the Court shall be brought by notice of motion (in these Rules referred to as "the notice of appeal") in the form appearing in the First Schedule.

(2) The notice of appeal shall state clearly and concisely the grounds of appeal. The notice shall be signed by the appellant or his agent or barrister and solicitor and shall state therein an address for service in Fiji to or at which notices, process, and other documents and written communications relating to the appeal may be sent by registered post or left for the appellant. Service by post or delivery as aforesaid shall be deemed to be good service on the appellant.

(3) The original notice of appeal and 1 copy thereof shall be filed in the office of the Court within the time notified to the appellant by the Commissioner under subsection (5) of section 62 of the Act as the time within which the appellant may exercise the right of appeal to the Court.

(4) The appellant shall cause a copy of the notice of appeal to be served upon the Commissioner at his office at Suva, either personally within the time referred to in paragraph (3).

7. - (1) Upon the filing of the notice of appeal, the Registrar shall cause the appeal to be entered in the books of the Court and shall obtain a direction by the person for the time being appointed to hold the Court as to the day, time and place to be appointed for the hearing of the appeal.

(2) Unless, on the application of the appellant, it is otherwise directed, the place of the hearing of the appeal shall be at Suva. An appellant may apply any time to the person for the time being appointed to hold the Court for the direction that the appeal be entered for hearing at any place other than at Suva or, if the appeal has been entered for hearing at Suva, to change the place of hearing. Any such application may be made by motion on not less than 4 days’ notice to the Commissioner.

8. The Registrar shall not give less than 30 days' notice in writing (in these Rules referred to as "the notice of hearing") to the appellant and to the Commissioner of the day, time and place appointed for the hearing of the appeal.

9. Service of the notice of hearing on the Commissioner may be effected by sending a copy of the notice by registered post to him at his office at Suva, or by leaving a copy of the notice at that office. Service on the appellant may be effected in accordance with paragraph (2) of rule 6.

10. A notice of appeal may be amended at any time by or with the leave of the Court on such terms and conditions as the Court may think just.

11. At the request of the appellant or the Commissioner or by the direction of the Court itself, a subpoena ad testificandum or duces tectum may be issued requiring any person to attend to give evidence or to produce document in connection with the appeal.

12. (1) On the day fixed for the hearing of the appeal or any other day to which the hearing may be adjourned, the appellant, or his agent or barrister and solicitor, shall be heard in support of the appeal.

(2) The Court shall then, if it does not dismiss the appeal at once, hear the Commissioner or his officer or barrister and solicitor and, in such case, the appellant shall have the right of reply.

(3) Subject to the provisions of the Act or to these Rules, the ordinary practice and the Rules of the Supreme Court shall apply, with the necessary modifications, in relation to an appeal under these Rules.

13. - (1) The fees set out in the Second Schedule shall be charged and paid in respect of the matters therein specified.

(2) The fees to be charged and paid in respect of matters not specified in the said Schedule shall be the fees payable in respect of similar matters in civil proceedings in the Supreme Court:

Provided that no fees shall be charged or be payable by the Commissioner in relation to any act, application or proceeding by him in relation to an appeal.

14. - (1) Subject to the provisions of section 68 of the Act, the costs of and incidental to an appeal shall be in the discretion of the Court but, unless the Court in any particular case for good reason shall think fit to otherwise to order, legal practitioners' costs shall not exceed the maximum allowance of costs set out in Appendix 4 to the Supreme Court Rules.

(2) When the Court directs that the costs, or any part of the costs, of an appeal be paid by the appellant or by the Crown, the Court may the amount of such costs to be paid or may direct that the costs be taxed by the registrar.

(3) The Court may allow as costs of an appeal the allowances and expenses of witnesses attending the hearing of the appeal in accordance with the Rules for the time being in force in the Supreme Court of Fiji in relation to allowances and expenses of witnesses attending at trials before the Supreme Court and, for that purpose, any reference in such Rules to the Chief Registrar of the Supreme Court shall be deemed to be a reference to the Registrar of the Court of Review.

(4) The Court may allow such other necessary costs and allowances as may seem to the Court to be fair and reasonable.

TAKE NOTICE that the Court of Review will be moved by the above-mentioned appellant upon such day and time and at such place as may be appointed for the sitting of the Court, for an order that the decision of the Commissioner for the Inland Revenue dated the ....... day of ..., 19..., disallowing the objection by the appellant to the following assessment(s):-

be revised or set aside and that the Crown do pay to appellant the costs of this appeal.

And further take notice that the grounds of this appeal are as follows: - [set out clearly and concisely the grounds of appeal which, save with the leave of the Court, shall be the reasons stated in the objection to the assessment]

Dated this day....... of ......., 19...

4. Employee may file declaration as to allowances to be taken into account in calculating deductions.

5. Employer to ascertain periodical allowances applicable
6. Employer to deduct tax as prescribed in tax tables
7. Deductions in case of overtime, bonus, gratuity, etc.
8. Casual and seasonal employees, etc
9. Deductions in case of death of employee
10. Exemptions from deductions
11. Commissioner may determine questions on emoluments

13. Returns to accompany payments of tax deducted
14. Employer to submit separate accounts in respect of retrospective emoluments
15. Employer to furnish certificates of deduction
16. Employer to furnish certificates on cessation of employment
17. Employer to furnish certificates of deductions on cessation of business
18. Employer to furnish certificate on death of employee
19. Employer to furnish employee with particulars of emoluments and deductions
20. Employer to keep records of emoluments paid and deductions
21. Summary of emoluments

23. Personal representative to assume liability of deceased employer
24. Change of employer
25. Commissioner to prepare tax tables
26. Employer to produce wages sheets, etc., for inspection
27. Employee may complain to Commissioner in respect deductions made by employer
28. Commissioner to determine complaint
29. Publication of notice by Commissioner
30. Tax deductions by employer to be treated as single debt
31. Commissioner may sanction use of certificates and tax tables other than prescribed
32. Personal liability in cases of partnership or company
33. Obstructions
34. Offences by employer

Regulations 9 September 1964,
Legal Notices Nos. 38 of 1967, 202 of 1968, 69 of 1976,
31 of 1982, 6 of 1983

(2) Unless the context otherwise requires, references in these Regulations to an employer or a person paying emoluments shall be deemed to include reference to the Crown.

3. - (1) Subject as hereinafter provided, every person who carries on or is about to carry on any trade, business, profession or vacation in respect of which he is or will be an employer, shall, on or before the 15 January 1965 or within 30 days of the commencement of such trade, business, profession or vacation, which ever is the later date, register with the Commissioner-

Provided that this regulation shall be deemed to have been complied with if, in the case of a partnership, the precedent partner and, in the case of body of persons, the manager or the principal officer, carries out the provisions of this regulation.

(2) The provisions of paragraph (1) shall not apply in respect of any person who has filed a return of the income of his trade, business, profession or vocation for the income year ended 31 December 1963 and such person shall be exempt from the provisions of this regulation.

Employee may file declaration as to allowances to be taken into account in calculating deductions

4. - (1) Any employee to whom any payment is made at any time during the year 1965 or any year thereafter of or on account of any emoluments may, for the purpose of enabling any deductions which may be made under regulation 6 to be calculated with reference to the allowances to which such employee may be entitled under the Act, file with the person making the payment a declaration in the appropriate form containing such particulars as may be required therein:

Provided that:

(ii) such employees or classes of employees as may be specified by the Commissioner by notice published in accordance with these Regulations,

(2) Every employee who is a married woman living with her husband shall submit to her employer a declaration to that effect in the appropriate form on the first receiving emoluments from her employer and thereafter on the first working day of January in every year during which she is an employee and, in such declaration may claim only the personal allowance and any allowance to which she may be entitled under paragraphs (a), (d) and (g) of section 26 of the Act as modified by paragraph (i) of proviso (a) to paragraph (1).

(3) The declaration which an employee may file under the provisions of this regulation may include particulars of all or any of his total allowances as the employee may think fit.

(4) An employee entitled to and wishing to file a declaration under the provisions of this regulation shall do so at the following times:-

(5) On a change occurring in the total allowances of any employee by whom a declaration has been filed which results in the total allowances of that employee being less than the total allowances claimed by him in his declaration, such employee shall file a further declaration within 7 days of the day on which the change occurs.

(6) The employer within 15 days of receipt of a declaration from an employee shall sent it to the office of the Commissioner.

(7) The Commissioner may, if he is not satisfied with the amount of any allowances claimed by an employee in the declaration made by him under the manner as may be required. The Commissioner, in such circumstances may issue to the employer a direction as to the total amount of allowances in respect of such employee.

(8) If an employee who, under these Regulations is liable to have tax deducted from his emoluments –

5. – (1) On receiving from an employee a declaration made under the provisions of regulation 4 or upon receipt of a declaration from the Commissioner as to the total amount of allowances in respect of an employee, the employer shall ascertain what amount of the total annual allowances claimed is applicable to each periodical payment of emoluments as follows:-

and shall enter the amount thus ascertained (hereinafter referred to as the "free emoluments") in the appropriate part of the declaration form, and in his own pay records and, after making such entries, shall send the declaration to the Commissioner within the time prescribed by paragraph (6) of regulation 4:

Provided that the Commissioner may deduct from the total amount of allowances in respect of an employee:

(2) Where emoluments are payable to any employee at intervals other than a week, a fortnight, 4 weekly or a month, the employer shall refer the question of ascertainment of free emoluments to the Commissioner for direction.

(3) Where no declaration under the provisions of regulation 4 has been received from an employee, the total annual allowances for such employee shall be deemed to be the amount of the personal allowances provided for in subsection (1) of section 25 of the Act:

Provided that, for an employee resident outside Fiji, the amount of such allowances shall be deemed to be NIL.

(4) In any case where a person commences employment in Fiji during the year, he may apply to the Commissioner for his free emoluments for that year to be fixed by reference to the unexpired portion of the year and the Commissioner shall determine the free emoluments for that year accordingly and shall notify the employer the amount of free emoluments as thus determined.

6. - (1) Every employer, when making payment of emoluments to an employee in excess of the free emoluments (such excess emoluments hereinafter being referred to as "taxable emoluments"), shall deduct therefrom such amount of tax as shall be prescribed in the tax tables:

Provided that the proportion of the annual value of all emoluments received by such employee otherwise than in money applicable to the period in respect of which the emoluments are being paid shall, unless already taken into account in the ascertainment of such employee's free emoluments under the provisions of the proviso to paragraph (1) of regulation 5, be deemed for the purposes of this paragraph to be part of the emoluments being paid and shall be taken into account in calculating the amount of tax to be deducted therefrom.

(2) Every employer shall be deemed to make payment of emoluments to an employee not only when an amount of emoluments is actually paid but also when emoluments are credited for the benefit of an employee to an account on which the employee can draw or over which he has control or are otherwise applied for his benefit or at his direction or are applied in reduction of a debt due by him to the employer, unless such indebtedness arose from a payment in advance of or on account of remuneration from which tax was deducted at the time of payment.

(3) In any case where an employee is in receipt of emoluments from more than 1 employer at the same time, the Commissioner shall, on request of the employee, determine and notify each of such employers in writing the amount to be deducted by each of such employers as tax from the emoluments of the employee and, in such a case, the employer shall not act upon the amount of total annual allowances which may be shown in a declaration submitted to him by the employee under the provisions of regulation 4.

(4) No action shall lie against any person for deducting any sum of money in compliance or intended compliance with the provisions of these Regulations.

(5) Where, by these Regulations, any obligation is imposed on any person to deduct any tax upon payment of emoluments, any agreement made by such person not to deduct such tax shall be void and of no force or effect whatsoever.

(6) Every person from whose emoluments any amount shall be deducted pursuant to these Regulations shall, upon the amount being so deducted, be deemed to have paid the same and shall thereupon cease to be liable for payment of tax to the extent of the amount so deducted.

7. - (1) If an employer makes a payment in respect of overtime services to an employee and such payment is not made at the same time as the payment of his regular emoluments, the employer shall, for the purpose of determining the tax to be deducted in respect thereof, include the amount of the overtime as part of the regular emoluments next to be paid, and deduct tax from those next emoluments by reference to the total of those emoluments and the overtime payment made earlier.

(2) If an employer makes a payment in respect of bonus, gratuity, or other additional earnings or retrospective increase in emoluments, the employer shall either:

8. - (1) The Commissioner may direct employers as to the amount of tax, if any, to be deducted from:

(2) Where the Commissioner is satisfied that the deduction of the amount of tax otherwise to be deducted from the emoluments of an employee would constitute an undue hardship, he may determine and advise the employer of the amount, if any, to be so deducted.

(3) Any directions given pursuant to the provisions of this regulation may, in particular, include directions as to the manner in which the tax, if any, shall be deducted, the period over which such deductions shall be made and such other matters as the Commissioner may think fit; and any employer to whom any such directions may be given shall comply with the directions so given.

9. If any emoluments are paid by an employer at any time after the date of death of an employee, the employer by whom the emoluments are paid, shall, subject to the provisions of regulation 10, on making any such payment, deduct, in accordance with the provisions of these Regulations, the tax on those emoluments as if the deceased employee was still alive at the date of payment.

unless the Commissioner, in any particular case, directs the employer to deduct tax in accordance with these Regulations.

12. Every employer shall pay to the Commissioner or as the Commissioner directs the total amount of tax deducted by him in compliance or intended compliance with the provisions of these Regulations on or before the fifteenth day of the month next succeeding the month in which the employer paid the emoluments and, on payment of such total amount, the Commissioner shall cause to be sent to such employer a receipt therefore:

Provided that, where the employer ceases to carry on business, all amounts of tax deducted by him as required by these Regulations and not paid to the Commissioner shall be paid by him to the Commissioner within 7 days of the day on which the employer ceased to carry on business.

13. Every payment made as required by regulation 12 shall be accompanied by a return made out on the appropriate form by on behalf of the employer.

14. Where the payment of a bonus or of any sum to meet any retrospective increase in emoluments granted to an employee is made at any time in any year and the whole or any part of such payment relates to any calendar year preceding the year in which such payment is made, the employer shall, within 7 days of such payment being made, deliver or send by post to the Commissioner a separate account of such payment made out on the appropriate form, and showing the total of such emoluments paid and the total amount of tax deducted therefrom.

15. - (1) On or before the last day of the month of February of each year next following a year in which tax was deducted from the emoluments of an employee, the employer by whom the tax was deducted shall unless he has previously delivered or sent to the employee a certificate provided for by regulation 16, 17 or 18, deliver personally or send by post to the employee a certificate in duplicate made out on the appropriate form and containing the following particulars, namely-

(2) Where an employer is required to deliver or send a certificate in duplicate to an employee under the provisions of paragraph (1), he shall make, on the appropriate form, 2 further copies of such certificate, 1 of which copies he shall deliver personally or send by post to the Commissioner on or before the last day of February in each year, and the other copy shall be retained by the employer for record purposes.

16. - (1) If any employer ceases to employ an employee from whose emoluments tax was deducted by him in accordance with these Regulations, he shall not later than 7 days after the day on which the last payment of emoluments was made, deliver personally or send by post to the employee a certificate in duplicate on the appropriate form containing the following particulars, namely:-

(2) Where an employer is required to deliver or send a certificate in duplicate to an employee under the provisions of paragraph (1), he shall make, on the appropriate form, 2 further copies of such certificate, 1 of which copies he shall deliver personally or send by post to the Commissioner not later than 7 days after the day on which the last payment of emoluments was made, and the other copy shall be retained by the employer for record purposes.

(3) If an employee retires from the service of an employer and is granted a pension, such retirement shall not be treated as a cessation of employment for the purposes of this regulation, if the emoluments are paid by or on behalf of the same person both before and after the retirement.

17. - (1) If an employer ceases to carry on business, he shall, not later than 1 month after the cessation of the business, deliver personally or send to each employee from whose emoluments any tax was deducted during the year in which the business ceased a certificate in duplicate made out in the appropriate form and containing the particulars specified in regulation 15 for or in respect of a period beginning with the first day of the year in which the business ceased to be carried on and ending on the day of cessation of that business:

Provided that, in the case of a business commenced to be carried on in the year in which it ceases, the date of commencement of the period for or in respect of which the particulars of the certificate shall relate shall be the date on which the business commenced to be carried on in that year.

(2) Where an employer is required to deliver or send a certificate in duplicate to an employee under the provisions of paragraph (1) he shall make, on the appropriate form, 2 further copies of such certificate, 1 of which copies he shall deliver personally or send by post to the Commissioner within 1 month of the day of cessation of business, and the other copy shall be retained by the employer for record purposes.

18. Where an employee dies, the employer shall, not later than the fifteenth day of the month next following that in which the death occurred, deliver personally or send to the legal or personal representative, or on to the next of kin of the deceased employee, if known to him, the certificate in duplicate referred to in regulation 16 and shall, within the same time, deliver personally or send by post to the Commissioner a further copy of such certificates made on the appropriate form and shall insert thereon the name and address of the legal or personal representative, or of the next of the kin of the deceased employee, if known to him.

19. When an employer makes any payment of emoluments to an employee from whom tax is deducted as required by these Regulations, he shall, at the same time, furnish to the employee particulars of payment, including particulars of the gross emoluments for the pay period and of the amount of tax deducted therefrom, in the appropriate form:

Provided that, where the Commissioner is satisfied that it is expedient to do so, he may, by notice in writing, exempt any or all employers from complying with the provisions of this regulation in respect of such classes of employees as may be specified in such notice, which shall be operative until revoked.

20. Every employer who makes any payment of emoluments to an employee from whose emoluments tax is deducted as required by these Regulations shall keep, to the satisfaction of the Commissioner, a record of the emoluments paid to each such employee and of the tax deducted therefrom on each payment thereof.

21. On or before the last day of February of each year next following the year in which tax was deducted from emoluments of employees, every employer shall deliver personally, or send by post, to the Commissioner a summary in duplicate made out in the appropriate form containing the following particulars:-

Provided that, on the cessation of business by the employer, the Commissioner may require the employer to deliver or send the summary within such times as he may specify.

22. (1) Tax in respect of emoluments shall be assessed by the Commissioner in accordance with the provisions of section 55 of the Act, and a notice of assessment shall be sent to every employee so assessed by whom tax is payable or from whose emoluments any tax was deducted during the year:

Provided that nothing in this regulation shall be construed as requiring a notice of assessment to be sent in any case which does not require adjustment of tax, unless the employee so requires.

(2) If the tax payable under the assessment is less than the total tax deducted from the employee's emoluments in respect of the year, the Commissioner shall refund the difference to the employee:

Provided that, in all such cases, the Commissioner shall ignore the amount of such difference if it be less than $2.

(3) If the tax payable under the assessment exceeds the total tax deducted from the employee's emoluments in respect of the year, the Commissioner shall required 1 required the employee to pay the difference to him:

Provided that, in all such cases, the Commissioner shall ignore the amount of such difference if it be less than $2.

(4) The provisions of the Act relating to objections and appeals shall apply to any assessment made in accordance with this regulation.

23. If an employer dies, anything which he would have been liable to do under these Regulations shall be done by his personal representative, or, in the case of an employer who paid emoluments on behalf of another person, by the person succeeding him, or if no person succeeds him, by the person on whose behalf the emoluments were paid.

24. - (1) This regulation shall apply where there has been a change only in the employer from whom an employee receives emoluments in respect of his employment in any trade business, profession or vocation or in connection with the working of any property, or from whom an employee receives any annuity or pension or allowance in respect of past services.

(2) Where this regulation applies, the change shall not be treated as a cessation of employment for the purposes of regulation 16 and, in relation to any matter arising after the change, the employer after the change shall be liable to do anything which the employer before the change would have been liable to do under these Regulations if the change had not taken place:

Provided that the employer after the change shall not be liable for the payment of any tax which was deductible from emoluments paid to the employee before the change took place.

25. (1) The tax tables shall be constructed by the Commissioner with a view to securing that, so far as practicable, the tax to be deducted as required by these Regulations from the emoluments of any employee may be readily ascertained and with a view to securing that, so far as practicable, the total tax payable in respect of any emoluments is deducted from the emoluments paid during the year.

(2) Separate tables shall be prepared for weekly, fortnightly, 4 weekly and monthly pay periods. Such tables shall make provision for such ranges of emoluments as the Commissioner shall think fit.

(3) For the purposes of this regulation, reference to the total tax payable shall, in relation to the tables referred to in paragraph (1), be construed as references to the total tax estimated to be payable, having regard only to the allowances claimed by the employee in the declaration required to be completed and filed under the provisions of regulation 4 and without aggregating emoluments from 2 or more sources or emoluments with other income, or the emoluments of a husband with those of his wife.

26. Every employer, when called upon to do so by the Commissioner or by any person authorised in writing by the Commissioner in that behalf, shall produce to the Commissioner or to such authorised person for inspection all wages sheets and other documents and records whatsoever relating to the calculation or payment of the emoluments of his employees to whom he pays emoluments or to the deduction of tax therefrom or to the accounting for any tax deducted therefrom.

27. If any employee considers that any tax deducted by his employer is less than or in excess of the amount of tax which ought properly to be deducted from his emoluments in accordance with these Regulations, he may, in writing, give notice of complaint, stating the grounds of his complaint, to the Commissioner.

28. In the event of the Commissioner being satisfied on the complaint of any employee made under Regulation 27:

29. Any notice published by the Commissioner pursuant to these Regulations shall be published in the Gazette and in at least 1 newspaper circulating in Fiji or in such other manner as the Commissioner may think fit.

30. (1) The total amount of tax which an employer is liable under the provisions of regulation 12 to pay to the Commissioner within the time specified by that regulation may, for the purposes of recovery thereof, be treated as a single debt, notwithstanding that the employer is liable to pay separate amounts in respect of more than 1 employee but nothing in this regulation shall prevent the bringing of separate actions for the recovery of each of the several amounts which the employer is liable to pay within the first 15 days of any month in respect of his several employees to whom he pays emoluments.

(2) A certificate of the Commissioner that any amount of tax mentioned in paragraph (1) has not been paid to him, or to the best of his knowledge and belief to any person acting on his behalf, shall be prima facie evidence that the sum mentioned in the certificate is due and unpaid, and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.

Commissioner may sanction use of certificates and tax tables other than prescribed

31. It shall be lawful for the Commissioner to give permission in writing to any employer to use for the purposes of these Regulations -

32.-(1) Where a trade, business, profession or vocation is carried on by 2 or more persons jointly, the precedent partner shall be personally liable for the performance of the duties required by the provisions of these Regulations to be performed by the person making the payment or by the person deducting any amount of tax; and, where a trade, business, or profession is carried on by a company, the managing director and the secretary of the company shall each, in addition to the company itself, be personally liable for the performance of the said duties.

(2) For the purposes of these Regulations in relation to a "partnership" the expression "precedent partner" shall mean the partner who of the partners resident in Fiji -

and, where no partner is resident in Fiji, the expression "precedent partner" shall mean the attorney, agent, manager or factor of the firm resident in Fiji.

33. If any person shall hinder, prevent or obstruct the Commissioner or any person authorised in writing by the Commissioner in that behalf from inspecting any wages sheets or other documents or records mentioned in regulation 26 after being called upon to produce the same, he shall be guilty of an offence and shall be liable on conviction, to a fine not exceeding $200 or to imprisonment for a term not exceeding 3 months or to both such fine and imprisonment.

34. If an employer fails or neglects to deduct tax from the emoluments of an employee in accordance with any of the provisions of these Regulations or of any direction issued thereunder by the Commissioner, or fails or neglects to remit to the Commissioner any tax deducted in accordance with these Regulations or with any such direction of the Commissioner or fails or neglects to keep the records required by regulation 20, he shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding $2,000 or to imprisonment for a term not exceeding one year in respect of each such failure or neglect on his part or to both such fine and imprisonment.

4. Employer to deduct basic tax upon payment of emoluments
5. Deductions in case of death of employee
6. Exemption from deductions

7. Employer to pay to Commissioner amount of tax deducted
8. Method of accounting for basic tax where wages bill under $1,920
9. Special arrangements in certain cases
10. Returns to accompany payments of tax deducted

11. Accounting procedure and notification to employee
12. Records in cases of casual labour

PART VIII - DEDUCTIONS OF BASIC TAX FROM PROCEEDS OF PRIMARY PRODUCE AND OTHER INCOME AT SOURCE

15. Deductions from sale proceeds of primary produce
16. Deduction of basic tax from other income
17. Basic tax deducted at source in the case of certain companies
18. Commissioner may make special arrangements in any case
19. Basic tax deducted at source to be taken into account in ascertaining amount of provisional tax payable

20. Indemnity of person making deduction
21. Agreement not to deduct basic tax shall be void
22. Deduction of basic tax
23. Personal representative to assume liability of deceased person
24. Change of employer
25. Employer, etc., to produce wages sheets, etc., for inspection
26. Employee may complain to Commissioner in respect of deductions made by employer
27. Commissioner to determine complaint
28. Personal liability in cases of partnership or company
29. General
30. Obstruction
31. Offences

1. These Regulations may be cited as the income Tax (Collection of Basic Tax) Regulations.

(2) Unless the context otherwise requires, references in these Regulations to an employer or a person paying emoluments shall be deemed to include reference to the Crown.

(4) Basic tax shall be collected in the manner most convenient to the source of income and where practicable shall be deducted at source by the person making the payment.

(5) In calculating the basic tax to be deducted from any amount in accordance with the requirements of these Regulations, the cents in that amount shall be ignored.

3. Every person who carries on or is about to carry on any trade, business, profession or vocation in respect of which he is an employer shall provide the Commissioner with certain information, and registration under the provisions of regulation 3 of the Income Tax (Employment) Regulations, shall be sufficient compliance with this regulation.

4. (1) Every employer, when making payment of emoluments to an employee, shall deduct therefrom the amount of basic tax applicable thereto:

Provided that, in respect of the payment of emoluments after 30 April 1969, where the amount of any payment to any employee (excluding the value of all emoluments received otherwise than in cash applicable to the period in which the emoluments are being paid) is $10 or less a week or where the amount of basic tax applicable to any such payment would reduce the balance thereof to $10 or less, then, unless the Commissioner otherwise directs, no deduction of basic tax shall be made by the employer from such payment.

(2) Where the emoluments of an employee include the estimated value of any quarters or board or residence or any other allowance granted in respect of employment other than in money, the proportion of the amount of the annual value of such quarters, board or residence or other allowance applicable to the period in respect of which the emoluments are being paid shall be deemed, for the purposes of paragraph (1), to be part of the emoluments being paid and shall be taken into account in calculating the amount of basic tax to be deducted therefrom.

(3) Every employer shall be deemed to make payment of emoluments to an employee not only when an amount of emoluments is actually paid but also when emoluments are credited for the benefit of an employee to an account on which the employee can draw or over which he has control or are otherwise applied for his benefit or at his direction or are applied in reduction of a debt due by him to the employer, unless such indebtedness arose from a payment in advance of or on account of remuneration from which basic tax was deducted at the time of payments.

(4) Where an employer makes to an employee, any payment of the types referred to in regulation 7 of the Income Tax (Employments) Regulations, he shall in all cases deduct basic tax at the time of making such payments.

5. Where, in the case of a deceased employee, any emoluments are paid by an employer at any time after the date of death of such employee, the employer shall, on making any such payment, deduct basic tax in accordance with these Regulations as if the employee were still alive at the date of payment.

unless the Commissioner, in any particular case, directs the employer to deduct basic tax in accordance with these Regulations.

7. Every employer shall pay to the Commissioner or as the Commissioner directs the total amount of basic tax deducted by him in compliance or intended compliance with the provisions of these Regulations on or before the fifteenth day of the month next succeeding the month in which the employer paid the emoluments and, on payment of such total amount, the Commissioner shall cause to be sent to such employer a receipt therefor:

Provided that, where the employer ceases to carry on business, all amounts of basic tax deducted by him as required by these Regulations and not paid to the Commissioner shall be paid by him to the Commissioner within 7 days of the day on which the employer ceased to carry on business.

8. - (1) Where an employer who is liable for provisional tax under the provisions of section 83 of the Act may reasonably be expected to have a wages bill of less than $1,920 a year, the basic tax deducted from or to be paid by him in respect of those wages shall, notwithstanding the other provisions of these Regulations, be accounted for in conjunction with the instalment payments of provisional tax, unless in any case the Commissioner otherwise directs.

(2) In the case of a partnership to which paragraph (1) applies, the precedent partner shall be liable to account for such basic tax.

9. To facilitate the accounting for small amount of basic tax by persons to whom regulation 8 would not apply, the Commissioner may make such special arrangements as he may consider appropriate.

10. Every payment made as required by regulation 7 shall be accompanied by a return made out on the appropriate form by or on behalf of the employer.

11. The requirements of regulations 15, 16, 17, 18, 19 and 20 of the Income Tax (Employments) Regulations shall apply to every employer in respect of basic tax deducted under the provisions of these Regulations, except that, where the only deduction made from the emoluments of an employee under either the provisions of these Regulations or the Income Tax (Employments) Regulations has been in respect of basic tax, then the provisions of such regulations 15, 16, 17 and 18 need not be complied with, unless in any particular case the Commissioner so requires.

12. In the case of casual labour in respect of whom an employer is not required under the provisions of the Employment Regulations, or any regulations superseding such Regulations to keep a record of wage payments, then no separate record shall be required to be kept in respect of such persons for the purposes of basic tax deductions, unless in any case or class of case the Commissioner should otherwise direct, and the provisions of regulation 11 shall be read accordingly.

13. The provisions of regulation 22 of the Income Tax (Employments) Regulations shall apply in respect of basic tax.

14. Upon payment of any interest to, or on the crediting of interest to, the account of any depositor, by any trading bank or savings bank in Fiji, or by the National Bank of Fiji, or upon payment by the Chief Accountant of any interest to any investor in any loan raised by the Fiji Government, basic tax shall be deducted by the person making the payment or the credit. Such amounts deducted shall, within 7 days of deduction, be paid to the Commissioner in such manner as he shall direct and with such details as he shall require.

PART VIII - DEDUCTIONS OF BASIC TAX FROM PROCEEDS OF PRIMARY PRODUCE AND OTHER INCOME AT SOURCE

15. - (1) The Commissioner may nominate, at his discretion, the person who shall be responsible for making the deduction at source of basic tax from the proceeds of the sale of primary produce and the person so nominated shall make and account for such deductions in such manner as the Commissioner shall require.

(2) In order that the amount of basic tax to be deducted from the sale proceeds of primary produce may be calculated, the Commissioner shall estimate such percentage of the gross sale proceeds of the primary produce as may be expected in the normal course of events to accrue to that class of primary producer as net profit for tax purposes.

(3) For the purpose of assisting primary producers to account to him for the basic tax which such producers are required to deduct from or to pay in respect of emoluments paid by them, the Commissioner shall estimate such percentage of the gross sale proceeds of the primary produce as may be expected in the normal course of events to be paid out as emoluments by the class of primary producer concerned.

(4) The Commissioner shall inform the person nominated under the provisions of paragraph (1) of the total of the 2 percentage figures estimated in accordance with paragraphs (2) and (3), and such person shall make the deduction of basic tax at the rate of 5 cents in each 2 complete dollars from that total percentage of the gross sale proceeds upon payment of such proceeds to, or on the crediting thereof to the account of, the primary producer.

(5) In making his estimates of the percentage figures required under the provisions of this regulation, the Commissioner shall have regard to returns of income lodged with him by that particular class of primary producer in previous years.

16. Where he is satisfied that it would be expedient for the more effective collection of basic tax, the Commissioner may, in the case of any particular source of income, require the person responsible for making payment to the person entitled to the income from the source deduct basic tax at the rate of 5 cents in each 2 complete dollars from such income upon payment or the crediting thereof to the account of the person entitled to such income and to account for such deductions in such manner as the Commissioner shall require.

17. Where any company has suffered deductions at source of basic tax under the provisions of these Regulations, the amount of such basic tax deducted during the course of the year shall, if required by the company, and to the extent to which it exceeds the liability of that company to account to the Commissioner for basic tax in respect of emoluments it has paid during that year, be treated by the Commissioner as part of the first payment of tax required to be made by that company under the provisions of paragraph (a) of subsection (1) of section 91 of the Act.

18. The Commissioner may, to meet the special circumstances of any case or class of case and subject to such terms and conditions as he, in his discretion, may require, make special arrangements for the deduction of basic tax and for accounting for the amounts so deducted.

Basic tax deducted at source to be taken into account in ascertaining amount of provisional tax payable

19. For the purpose of estimating the amount of provisional tax payable by a person in accordance with the provisions of section 84 of the Act, the Commissioner shall take into account the estimated amount of basic tax expected to be deducted at source from the income of that person, to the extent to which the amount to be so deducted may reasonably be expected to exceed the estimated liability of that person to account to the Commissioner for basic tax in respect of emoluments expected to be paid by him during the year.

20. No action shall lie against any person for deducting any sum of money in compliance or intended compliance with the provisions of these Regulations.

21. Where, by these Regulations, any obligation is imposed on any person to deduct any basic tax upon payment of emoluments, interest, proceeds of primary produce or any other income, any agreement made by such person not to deduct such tax shall be void and of no force or effect whatsoever.

22. Every person, from whose emoluments, interest, proceeds of primary produce or other income shall be deducted pursuant to the provisions of these Regulations, shall, upon the sum being so deducted, be deemed to have paid such sum and shall thereupon cease to be liable for payment of basic tax in respect of such emoluments, interest, proceeds of primary produce or other income.

23. If an employer or person nominated under the provisions of regulations 15, 16, and 18 dies, the obligations of such deceased employer or person nominated in pursuance of the provisions of these Regulations shall be performed by his personal representative, or, in the case of an employer who paid emoluments on behalf of another person, by the person succeeding such employer or, if no person succeeds him, by the person on whose behalf the emoluments were paid.

24. When there has been a change in the employer from whom an employee receives emoluments in respect of his employment in any trade, business, profession or vocation, or in connection with the working of any property or from whom an employee receives any annuity, pension or allowance, such charge shall not be treated as a cessation of employment for the purposes of regulation 16 of the Income Tax (Employments) Regulations and, in relation to any matter arising after the change, the employer after the change shall be liable to do all that which the employer before the change would have been liable to do under the provisions of these Regulations if the change had not taken place:

Provided that the employer after the change shall not be liable for the payment of any basic tax which was deductible from emoluments paid to the employee before the change took place.

25. Every employer, every payer of interest required under the provisions of regulation 14, every person nominated under the provisions of paragraph (2) of regulation 15 and every other person required under the provisions of these Regulations to make deductions of basic tax, when called upon to do so by the Commissioner or by any person authorised in writing by the Commissioner in that behalf, shall produce to the Commissioner or to such authorised person for inspection all wages sheets and other documents and records whatsoever relating to the calculation or payment of the emoluments of his employees to whom he pays emoluments or to the deduction of basic tax therefrom or from any payment of interest proceeds of primary produce or other income or to the accounting for any basic tax deducted therefrom.

26. If any employee considers that any basic tax deducted by his employer is less than or in excess of the amount of basic tax which ought properly to be deducted from his emoluments in accordance with these Regulations, he may, in writing, give notice of complaint, stating the grounds thereof, to the Commissioner.

27. In the event of the Commissioner being satisfied on the complaint of any employee made under regulation 26 that:

28. Where a trade, business, profession or vocation is carried on by 2 or more persons jointly, the precedent partner shall be liable for the performance of the duties required by the provisions of these Regulations to be performed by the person making the payment or by the person deducting any amount of basic tax; and, where a trade, business or profession is carried on by a company, the managing director and the secretary of the company shall each, in addition to the company itself, be personally liable for the performance of the said duties.

29. The Commissioner shall determine any question which may arise as to the amount of basic tax which should be deducted in any particular case and, where he considers it appropriate, may direct that no basic tax need be deducted, or direct any person required to make any deduction as to the amount to be deducted in any particular case, in which he might otherwise be required to deduct under the other provisions of these Regulations.

30. If any person shall hinder, prevent or obstruct the Commissioner or any person authorised in writing by the Commissioner in that behalf from inspecting any wages sheets or other documents or records mentioned in regulation 25 after being called upon to produce the same, he shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding $200 or to imprisonment for a term not exceeding 3 months or to both such fine and imprisonment.

31. If any person required under the provisions of these Regulations to deduct basic tax from any payment fails or neglects to deduct such basic tax in accordance with any of the provisions of these Regulations or of any direction issued thereunder by the Commissioner or fails or neglects to remit to the Commissioner any basic tax deducted in accordance with these Regulations or with any such direction of the Commissioner or fails or neglects to keep such records as may be required by the Commissioner for the purposes of these Regulations, he shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding $200 or to imprisonment for a term not exceeding 3 months in respect of each such failure or neglect on his part or to both such fine and imprisonment.

The arrangements specified in the Schedule to this Order have been made between the Government of the United Kingdom and Northern Ireland and the Government of Japan and that it is expedient that those arrangements should have effect in Fiji in relation to tax notwithstanding anything contained in any enactment.

The Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Japan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect of Taxes on Income, signed at Tokyo on 4 September 1962.

ARTICLE

1. Personal scope
2. Taxes covered
3. General definitions
4. Fiscal domicile
5. Permanent establishment
6. Industrial or commercial profits
7. Associated enterprises
8. Shipping and air transport
9. Dividends
10. Interest
11. Royalties
12. Personal services
13. Directors' fees
14. Public entertainers and athletes
15. Governmental functions
16. New Zealand Government's bilateral
17. Professors and teachers
18. Students and trainees
19. Dual residence
20. Elimination of double taxation
21. Mutual agreement procedure
22. Exchange of information
23. Entry into force
24. Termination

The Government of Fiji, has made arrangements with the Government of New Zealand with a view to the prevention of the levying under the laws of Fiji and of New Zealand of income tax in respect of the same income and the rendering of reciprocal assistance in the administration of and the collection of taxes under the income tax laws of Fiji and of New Zealand.

The arrangements so made are embodied in a Convention concluded on 27 October 1976, a copy of which is set out in the Schedule.

AGREEMENT BETWEEN THE GOVERNMENT OF FIJI AND THE GOVERNMENT OF NEW ZEALAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of Fiji and the Government of New Zealand.

Desiring to conclude an Agreement with the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Have agreed as follows:

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

(2) This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes by either Contracting State.

(3) For the purposes of paragraph (1) (b) of this Article the income tax does not include the bonus issue tax.

(2) In determining, for the purposes of Article 9, 10 or 11, whether dividends, interest or royalties are beneficially owned by a resident of a Contracting State, dividends, interest or royalties in respect of which a trustee is subject to tax in that Contracting State shall be treated as being beneficially owned by that trustee.

(3) In this Agreement, the terms "Fiji tax" and "New Zealand tax" do not include any amount which represents a penalty or interest imposed under the law of either Contracting State relating to the taxes to which this Agreement applies by virtue of Article 2.

(4) In the application of the provisions of this Agreement by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes to which this Agreement applies by virtue of Article 2.

(2) Where by reason of the provisions of paragraph (1) of this Article an individual is both a New Zealand resident and a Fiji resident then his status shall, for the purposes of this Agreement, be determined in accordance with the following rules -

(3) Where, by reason of the provisions of paragraphs (1) of this Article, a person other than an individual is both a New Zealand resident and a Fiji resident then its status shall, for the purposes of this Agreement, be determined in accordance with the following rules -

(5) For the purposes of this Agreement, the terms "resident of a Contracting State" and "resident of the other Contracting State" means a person who is a New Zealand resident or a person who is a Fiji resident, as the context requires.

(1) For the purposes of this Agreement the term "permanent establishment", in relation to an enterprise, means a fixed place of trade or business in which the trade or business of the enterprise is wholly or partly carried on.

(2) The term "permanent establishment" includes -

(4) An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State and to carry on trade or business through that permanent establishment if -

(5) A person acting in a Contracting State on behalf of an enterprise of the other Contracting State (other than an agent of independent status to whom paragraph (7) of this Article applies) shall be deemed to be a permanent establishment of that enterprise in the first-mentioned Contracting State if -

(6) In any case where paragraph (5) of this Article does not apply, an enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State and to carry on trade or business through that permanent establishment if -

(7) An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on trade or business in that other Contracting State through a broker, a general commission agent or any other agent of independent status, where such a person is acting in the ordinary course of his business as a broker, a general commission agent or other agent of independent status.

(8) The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on trade or business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute a place of business of either company a permanent establishment of the other.

(1) Industrial or commercial profits of an enterprise of Contracting State shall be subject to tax only in that Contracting State unless the enterprise carries on trade or business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on trade or business as aforesaid, tax may be imposed by that other Contracting State on the whole of the industrial or commercial profits of the enterprise from sources within that other Contracting State whether or not those profits are attributable to that permanent establishment.

(2) Where an enterprise of a Contracting State carries on trade or business in the other Contracting State through a permanent establishment situated therein, there shall be attributed to that permanent establishment situated therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it might be expected to make if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment; and the profits so attributed shall be deem to be income derived from sources in that other Contracting State and shall be taxed accordingly.

(3) In determining the industrial or commercial profits attributable to a permanent establishment in a Contracting State, there shall be allowed as deductions all expenses of the enterprises, including executive and general administrative expenses, which would be deductible if the permanent establishment were an independent enterprise and which are reasonably connected with the permanent establishment, whether incurred in the Contracting State in which the permanent establishment is situated or elsewhere.

(4) If the information available to the competent authority of the Contracting State concerned is inadequate to determine the industrial or commercial profits to be attributed to the permanent establishment, nothing in this Article shall affect the application of the law of that Contracting State in relation to the liability of the enterprise to pay tax in respect of the permanent establishment on an amount determined by the exercise of a discretion or the making of an estimate by the competent authority of that Contracting State. Provided that the discretion shall be exercised or the estimate shall be made, so far as the information available to the competent authority permits, in accordance with the principles stated in this Article.

(5) Industrial or commercial profits shall not be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

(6) Nothing in this Article shall apply to either Contracting State to prevent the operation in the Contracting State of any provisions of its law at any time in force relating to the taxation of any income from the business insurance. Provided that if the law in force in either Contracting State at the date of signature of this Agreement relating to the taxation of that income is varied (otherwise than in minor respects so as not to affect its general character), the Contracting Governments shall consult with each other with a view to agreeing to such amendment of this paragraph as may be appropriate.

and in either case conditions are operative between the two enterprises in their commercial or financial relations which differ from those which might be expected to operate between independent enterprises dealing at arm's length, then any profits which, but for those conditions, might have been expected to accrue to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise.

(2) Profits included in the profits of an enterprise of a Contracting State under paragraph (1) of this Article shall be deemed to be income of that enterprise derived from sources in that Contracting State and shall be taxed accordingly.

(3) If the information available to the competent authority of a Contracting State is inadequate to determine, for the purposes of paragraph (1) of this Article the profits which might have been expected to accrue to an enterprise, nothing in this Article shall affect the application of any law of that Contracting State in relation to the liability of that enterprise to pay tax on an amount determined by the exercise of a discretion or the making of an estimate by the competent authority of that Contracting State. Provided that the discretion shall be exercised or the estimate shall be made, so far as the information available to the competent authority permits, in accordance with the principle stated in this Article.

(1) A resident of a Contracting State shall subject to paragraphs (2), (3) and (4) of Article 6 and to Article 7, be exempt from tax in the other Contracting State on profits from the operation of ships or aircraft other than operations confined to places in that other Contracting State.

(2) The exemption provided in paragraph (1) of this Article shall apply in relation to the share of the profits from the operation of ships or aircraft derived by a resident of a Contracting State through participation in a pool service, in a joint transport operating organisation or in an international operating agency but only to the extent to which the share of the profits is not attributable to profits from voyages, flights or operations confined solely to places in the other Contracting State.

(3) For the purposes of this Article and Article 20, profits derived from the carriage of passengers, livestock, mails, goods or merchandise shipped in a Contracting State for discharge at another place in that Contracting State shall be treated as profits from the operation of a ship or aircraft confined solely to places in that Contracting State.

(4) If the mode of operation of ships or aircraft by residents of either of the Contracting States at the date of signature of this Agreement is subsequently so changed that either of the Contracting Governments considers that the wording of the Article should be reviewed, the Contracting Governments shall consult with each other with a view to deciding whether any modification of this Article is desirable.

(1) Dividends paid by a company which is a Fiji resident to a person who is a New Zealand resident may be taxed in New Zealand. However, such dividends may be taxed in Fiji and according to the law of Fiji, but, where that person is the beneficial owner of the dividends, the amount of Fiji tax so charged shall not exceed 15 per cent of the gross amount of the dividends.

(2) Dividends paid by a company which is a New Zealand resident to a person who is a Fiji resident may be taxed in Fiji. However, such dividends may be taxed in New Zealand and according to the law of New Zealand, but, where that person is the beneficial owner of the dividends, the amount of New Zealand tax so charged shall not exceed 15 per cent of the gross amount of the dividends.

(3) The limitation on the amount of tax for which paragraphs (1) and (2) of this Article provide shall not apply if the person who is the beneficial owner of the dividends being a resident of a Contracting State, has in the other Contracting State a permanent establishment and the holding giving rise to the dividends is effectively connected with that permanent establishment. In such a case, the dividends may be taxed in that other Contracting State in accordance with the law of that other Contracting State.

(4) Dividends paid by a company which is a resident of a Contracting State, being dividends which are derived and beneficially owned by a person who is not a resident of the other Contracting State, shall be exempt from tax in that other Contracting State.

(1) Interest derived from sources within a Contracting State by a person who is a resident of the other Contracting State may be taxed in that other Contracting State. However, such interest may be taxed in that first-mentioned Contracting State and according to the law of that State, but, where that person is the beneficial owner of the interest, the amount of tax so charged shall not exceed 10 per cent of the gross amount of the interest.

(2) The limitation on the amount of tax for which paragraph (1) of this Article provides shall not apply if the person who is the beneficial owner of the interest, being a resident of a Contracting State, has in the other Contracting State a permanent establishment and the indebtedness giving rise to the interest is effectively connected with that permanent establishment, in such a case, the interest may be taxed in that other Contracting State in accordance with the law of that other Contracting State.

(3) The limitation on the amount of tax for which paragraph (1) of this Article provides shall not apply if the person who is the beneficial owner of the interest, being a resident of a Contracting State, and the person paying the interest are associated with each other. In such a case, the interest may be taxed in the other Contracting State in accordance with the law of the other Contracting State. For the purposes of this paragraph a person is associated with another person if either person controls directly or indirectly the other or if the same persons control directly or indirectly both. For this purpose the term "control" includes any kind of control, whether or not legally enforceable, and however exercised or exercisable.

(4) Where the application of the limitation on the amount of tax for which paragraph (1) of this Article provides is not excluded by virtue of the foregoing provisions of this Article, but, owing to a special relationship between the person paying the interest and the person who is the beneficial owner of the interest, or between both of them and some other person, the amount of the interest paid exceeds the amount which might have been expected to have been agreed upon in the absence of such relationship, the limitation on the amount of tax for which paragraph (1) of this Article provides shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State.

(1) Royalties derived from sources within a Contracting State by a person who is a resident of the other Contracting State may be taxed in that other Contracting State. However, such royalties may be taxed in that first-mentioned Contracting State and according to the law of that State, but, where that person is the beneficial owner of the royalties, the amount of tax so charged shall not exceed 15 per cent of the gross amount of the royalties.

(2) The term "royalties" in this Article means payments of any kind to the extent to which they are made as consideration for -

(3) The limitation on the amount of tax for which paragraph (1) of this Article provides shall not apply if the person who is the beneficial owner of the royalties, being a resident of a Contracting State, has in the other Contracting State a permanent establishment and the knowledge, information, assistance, right or property giving rise to the royalties is effectively connected with that permanent establishment. In such a case, the royalties may be taxed in that other Contracting State in accordance with the law of that other Contracting State.

(4) Where the application of the limitation on the amount of tax for which paragraph (1) of this Article provides is not excluded by virtue of paragraph (3) of this Article but owing to a special relationship between the person paying the royalties and the person who is the beneficial owner of the royalties, or between both of them and some other person, the amount of the royalties paid exceeds the amount which might have been expected to have been agreed upon in the absence of such relationship, the limitation on the amount of tax for which paragraph (1) of this Article provides shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State.

(1) Subject to Articles 15, 17 and 18, remuneration or income (other than pensions) derived by an individual who is a resident of a Contracting State in respect of personal (including professional) services shall be subject to tax only in that Contracting State unless the services are performed in the other Contracting State. If the services are so performed, such remuneration or income as is derived in respect thereof shall be deemed to have a source in, and may be subjected to tax in, that other Contracting State.

(2) Notwithstanding paragraph (1) of this Article, remuneration (other than pensions) derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be exempt from tax in that other Contracting State if -

(3) Notwithstanding paragraphs (1) and (2) of this Article, remuneration in respect of services performed aboard a ship or aircraft operated in international traffic by a resident of a Contracting State may be subjected to tax in that Contracting State. For the purposes of this paragraph, the term "international traffic" includes traffic between places in one country in the course of a voyage which extends over more than one country.

Notwithstanding anything contained in Article 12, directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State shall be deemed to have a source in, and may be taxed in, that other Contracting State.

(1) Notwithstanding anything contained in Article 12, remuneration or income derived by public entertainers (such as theatrical, motion picture, radio or television artistes and musicians) and by athletes from their personal activities as such shall be deemed to have a source in, and may be subjected to tax in, the Contracting State in which these activities are exercised.

(2) An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State and to carry on trade or business through that permanent establishment if it provides the services of a public entertainer or athlete referred to in paragraph (1) of this Article in that other Contracting State.

(1) Remuneration (other than pensions) paid by the Government of Fiji to any individual for services rendered to that Government in the discharge of governmental functions shall be exempt from New Zealand tax if the individual is not resident in New Zealand for the purposes of New Zealand tax or is resident in New Zealand for the purposes of New Zealand tax solely for the purpose of rendering those services.

(2) Remuneration (other than pensions) paid by the Government of New Zealand to an individual for services rendered to that Government in the discharge of governmental functions shall be exempt from Fiji tax if the individual is not a resident of Fiji for the purposes of Fiji tax or is a resident of Fiji for the purposes of Fiji tax solely for the purpose of rendering those services.

(3) Paragraphs (1) and (2) of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either Government for the purposes of profit.

Notwithstanding anything elsewhere in this Agreement, income derived by any person from the participation in any capacity whatsoever of that person in the New Zealand Government's Bilateral Aid Programme to Fiji shall be exempt from Fiji tax if -

A professor or teacher who visits a Contracting State for a period not exceeding two years for the purpose of teaching at a university, college, school or other educational institution in that Contracting State and who immediately before that visit was a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State on any remuneration for such teaching in respect of which he is or upon the application of this Article will be, subject to tax in the other Contracting State.

A student or trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and is present in the first-mentioned Contracting State solely for the purpose of his education or training shall not be taxed in that first-mentioned Contracting State on payments (including salary or wages to the extent to which he receives such payments for the purpose of his maintenance, education or training provided that such payments are made to him from outside that first-mentioned Contracting State.

(1) This Article shall apply to a person who is a resident of Fiji for the purposes of Fiji tax and is also resident in New Zealand for the purposes of New Zealand tax.

(2) Where such a person is treated for the purposes of this Agreement solely as a resident of a Contracting State, he shall be exempt in the other Contracting State from tax on income other than income which, under the law of that other Contracting State or under this Agreement, is derived, or is deemed to be derived, from sources in that other Contracting State.

(1) Subject to any provisions of the laws of Fiji which may from time to time be in force and which relates to the allowance of a credit against Fiji tax of tax paid in a country outside Fiji (which shall not effect the general principle hereof), New Zealand tax paid under the law of New Zealand and consistently with this Agreement, whether directly or by deduction, in respect of income derived by a Fiji resident from sources in New Zealand (excluding, in the case of a dividend, tax paid in respect of the profits out of which the dividend is paid) shall be allowed as a credit against Fiji tax payable in respect of that income.

(2) Subject to any provisions of the law of New Zealand which may from time to time be in force and which relate to the allowance of a credit against New Zealand tax of tax paid in a country outside New Zealand (which shall not affect the general principle thereof), Fiji tax paid under the law of Fiji and consistently with this Agreement, whether directly or by deduction, in respect of income derived by a New Zealand resident from sources in Fiji (excluding, in the case of a dividend, tax paid in respect of the profits out of which the dividend is paid) shall be allowed as a credit against New Zealand tax payable in respect of that income.

(3) For the purposes of paragraph (2) of this Article the term Fiji tax paid shall be deemed to include any amount which would have been payable as Fiji tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under -

(5) Where profits, on which an enterprise of a Contracting State has been charged to tax in that Contracting State, are also included in the profits of an enterprise of the other Contracting State as being profits which, because of the conditions operative between the two enterprises, might have been expected to accrue to the enterprise of that other Contracting State if the enterprise had been independent enterprises dealing at arm's length, the profits so included shall be treated for the purposes of this article as profits of the enterprise of the first-mentioned Contracting State from a source in that other Contracting State and credit shall be given in accordance with this Article in respect of the extra tax chargeable in that other Contracting State as a result of the inclusion of such profits.

(1) Where a taxpayer considers that the action of the competent authority in a Contracting State has resulted, or is likely to result, in double taxation contrary to the provisions of this Agreement, he shall be entitled to present the facts to the competent authority in the Contracting State of which he is a resident and, should be taxpayer's claim be deemed worthy of consideration, the competent authority in that Contracting State shall endeavour to come to an agreement with the competent authority in the other Contracting State with a view to the avoidance of the double taxation in question.

(2) The competent authority in a Contracting State may communicate directly with the competent authority in the other Contracting State for the purpose of giving effect to the provisions of this Agreement and in an endeavour it assures its consistent interpretation and application.

(1) The competent authorities shall exchange such information (being information available under the respective taxation laws of the Contracting States) as is necessary for carrying out the provisions of this Agreement or for the prevention of fraud or for the administration of statutory provisions against avoidance of the taxes to which this Agreement applies by virtue of Article 2.

(2) Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those (including a Court or reviewing authority) concerned with the assessment or collection of the taxes to which this Agreement applies by virtue or Article 2, or the determination of appeals in relation thereto.

(3) No information shall be exchanged which would disclose any trade secret or trade process.

(4) A competent authority shall not be obliged by this Article to disclose to the other competent authority any information which does not relate directly to the affairs of a taxpayer with whom the other competent authority is concerned.

This Agreement shall come into force on the date on which the last of all such things shall have been done in Fiji and New Zealand as are necessary to give the Agreement the force of law in Fiji and New Zealand so far as its provisions affect Fiji tax and New Zealand tax respectively, and shall thereupon have effect -

(2) The Contracting States shall, as soon as possible, inform one another in writing when the last of all such things shall have been done as are necessary to give the Agreement the force of law in the respective Contracting States.

This Agreement shall continue in effect indefinitely, but neither Contracting State may, on or before 30th June in any calendar year after the year 1979 give to the other Contracting State notice of termination and, in that event, this Agreement shall cease to be effective -

IN WITNESS WHEREOF the undersigned, duly authorised thereto have signed this Agreement.

Done at Wellington in duplicate this twenty-seventh day of October, one thousand nine hundred and seventy-six in the English language.

PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF FIJI AND THE GOVERNMENT OF NEW ZEALAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES OF INCOME.

The Government of Fiji and the Government of New Zealand have agreed that the following provision shall form an integral part of the Agreement:

In connection with Articles 9 and 20:

For the purposes of Articles 9 and 20, every reference to dividends paid shall include a reference to dividends distributed, credited, or dealt with in the interest of or on behalf of a person, and shall also include a reference to dividends deemed to have been distributed under the laws of a Contracting State.

This protocol shall enter into force on the same date as the Agreement.

Done at Wellington in duplicate this twenty-seventh day of October, one thousand nine hundred and seventy-six in the English language

ARTICLE

1. Personal scope
2. Taxes covered
3. General definitions
4. Fiscal domicile
5. Permanent establishment
6. Limitation of relief
7. Income from immovable property
8. Business profits
9. Shipping and air transport
10. Associated enterprises
11. Dividends
12. Interest
13. Royalties and management fees
14. Capital gains
15. Independent personal services
16. Employments
17. Artistes and athletes
18. Pensions
19. Governmental functions
20. Students
21. Teachers
22. Elimination of double taxation
23. Personal allowances
24. Non-discrimination
25. Mutual agreement procedure
26. Exchange of information'
27. Entry into force
28. Termination

The Government of Fiji has made arrangements with the Government of the United Kingdom with a view to the prevention of the levying under the laws of Fiji and of the United Kingdom of income tax in respect of the same income and the rendering of reciprocal assistance in the administration of, and the collection of taxes under the income tax laws of Fiji and of the United Kingdom.

The arrangements so made are embodied in a Convention concluded on the 21 November 1975, a copy of which is set out in the Schedule.

CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF FIJI FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Fiji;

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income;

Have agreed as follows:-

This Convention shall apply to persons who are residents of one or both of the Contracting States.

2. This Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify to each other any changes which are made in their respective taxation laws.

2. As regards the application of this Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of this Convention.

1. For the purposes of this Convention, the term "resident of a Contracting State" means, subject to paragraphs (2) and (3) of this Article, any person who, under the law of that Contracting State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature; the term does not include any individual who is liable to tax in that Contracting State only if he derives income from sources therein. The terms "resident of the United Kingdom" and "resident of Fiji" shall be construed accordingly.

2. Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

3. Where by reason of the provisions of paragraph (1) of this Article a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business in which the business of the enterprise is wholly or partly carried on.

2. The term "permanent establishment" shall include especially:

4. An enterprise of one of the Contracting States shall be deemed to have a permanent establishment in the other Contracting State if:

5. A person acting in a Contracting State on behalf of an enterprise of the other Contracting State - other than an agent of an independent status to whom the provisions of paragraph (6) of this Article apply - shall be deemed to be a permanent establishment in the first-mentioned Contracting State if he has, and habitually exercises in that Contracting State an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise.

6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in other Contracting State merely because it carries on business in that other Contracting State through a broker, general commission agent or any other agent of an independent status, where such persons are acting in the ordinary course of their business.

7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise) shall not of itself constitute either company a permanent establishment of the other.

Where under any provision of this Convention income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State, an individual, in respect of the said income is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State, and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned Contracting State shall apply only to so much of the income as is remitted to or received in that other Contracting state.

1. Income from immovable property may be taxed in the Contracting State in which such property is situated.

3. The provisions of paragraph (1) of this Article shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs (1) and (3) of this Article shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of professional services.

1. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other Contracting State but only so much of them as is attributable to that permanent establishment.

2. Where an enterprise of a Contracting State carries on Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment.

3. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses of the enterprise (other than expenses, which would not be deductible if the permanent establishment were a separate enterprise) which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere.

4. In so far as it has been customary in a Contracting State according to its law, to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total income of the enterprise to its various parts nothing in paragraph (2) of this Article shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall however, be such that the result shall be in accordance with the principles of this Article.

5. No profits shall be attributed to a permanent establishment by reason on the mere purchase by that permanent establishment of goods of merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is a good and sufficient reason to the contrary.

7. Where profits include items which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

8. Where profits are attributable to a permanent establishment situated in a Contracting State of an enterprise of the other Contracting State and those profits are remitted in whole or in part out of the first-mentioned State, then the profits so remitted shall not be subject to any greater charge to tax in the first-mentioned State then if they had not been so remitted.

9. Nothing in this Article shall affect any provisions of the law of either Contracting State regarding the taxation of:

A resident of a Contracting State shall be exempt from tax in the other Contracting State on profits from the operation of ships or aircraft other than profits from voyages of ships or aircraft confined wholly or mainly to places in the other Contracting State.

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

1. Dividends derived from a company which is a resident of Fiji by a resident of the United Kingdom may be taxed in the United Kingdom. Such dividends may also be taxed in Fiji but where such dividends are beneficially owned by a resident of the United Kingdom the tax so charged shall not exceed 15 per cent of the gross amount of the dividends.

2. Dividends derived from a company which is a resident of the United Kingdom by a resident of Fiji may be taxed in Fiji. Such dividends may also be taxed in the United Kingdom, and according to the laws of the United Kingdom, but where such dividends are beneficially owned by a resident of Fiji the tax so charged shall not exceed 15 per cent of the gross amount of the dividends.

3. However, as long as an individual resident in the United Kingdom is entitled to a tax credit in respect of dividends paid by a company resident in the United Kingdom, the following provisions of this paragraph shall apply instead of the provisions of paragraph (2) of this Article:

4. The term "dividends" as used in this Article means income from shares, or other rights, not being debt-claims, participating in profits, as well as income from corporate rights assimilated to income from shares by the taxation law of the State of which the company making the distribution is a resident and also includes any other item (other than interest relieved from tax under the provisions of Article 12 of this Convention) which, under the law of the Contracting State of which the company paying the dividend is a resident, is treated as a dividend or distribution of a company.

5. The provisions of paragraph (1), or as the case may be paragraphs (2) and (3), of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, has in the other Contracting State, of which the company paying the dividends is a resident, a permanent establishment and the holding by virtue of which the dividends are paid is effectively connected with a business carried on through that permanent establishment. In such a case the provisions of Article 8 shall apply.

6. If the beneficial owner of a dividend being a resident of a Contracting State owns 10 per cent or more of the class of shares in respect of which the dividend is paid then the provisions of paragraph (1), or as the case may be paragraphs (2) and (3), of this Article shall not apply to the dividend to the extent that it can have been paid only out of profits which the company paying the dividend earned or other income which it received in a period ending twelve months or more before the relevant date. For the purposes of this paragraph the tem "relevant date" means the date on which the beneficial owner of the dividend became the owner of 10 per cent or more of the class of shares in question:

Provided that this paragraph shall not apply if the beneficial owner of the dividend shows that the shares were acquired for bona fide commercial reasons and not primarily for the purposes of securing the benefit of this Article.

7. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that the State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on undistributed profits, even if the dividends paid of the undistributed profits consist wholly or partly of profits or income arising in that other State.

1. Interest arising in a Contracting State which is derived and beneficially owned by a resident of the other Contracting State may be taxed in that other State.

2. However, such interest may, also be taxed in the Contracting State in which it arises, and according to the law of that State, but the tax so charged shall not exceed 10 per cent of the gross amount of the interest.

3. The term "interest" as used in this paragraph means income from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits and other debt-claims of every kind as well as all other income assimilated to income from money lent by the taxation law of the State in which the income arises.

4. The provisions of paragraphs (1) and (2) of this Article shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, has in the other Contracting State in which the interest arises a permanent establishment and the debt-claim from which the interest arises is effectively connected with a business carried on through that permanent establishment. In such a case, the provisions of Article 8 shall apply.

5. Interest shall be deemed to arise in a Contracting State when the payer is the Government of that State, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred and such interest is borne by that permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

6. Any provision of the law of one of the Contracting State which relates only to interest paid to a non-resident company with or without any further requirement, or which relates only to interest payments between interconnected companies with or without any further requirement, shall not operate as to require such interest paid to a company which is a resident of the other Contracting State to be left out of account as a deduction in computing the taxable profits of a company paying the interest as being a dividend or distribution. The preceding sentence shall not however apply to interest derived and beneficially owned by a company which is a resident of one of the Contracting States in which more than 50 per cent of the voting power is controlled, directly or indirectly by a person or persons resident in the other Contracting State.

7. The relief from tax provided for in paragraph (2) of this Article shall not apply to interest on any form of debt-claim dealt in on a stock exchange where the beneficial owner of the interest:

8. Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and beneficial owner in the absence of such relationship, the provisions of this Article shall apply to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention.

1. Royalties and management fees arising in a Contracting State which are derived and beneficially owned by a resident of the other Contracting State may be taxed in that other State.

2. Royalties derived and beneficially owned by a resident of a Contracting State may also be taxed in the Contracting State in which they arise and according to the law of that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the royalties.

3. Management fees derived and beneficially owned by a resident of a Contracting State may also be taxed in the Contracting State in which they arise and according to the law of that State, but the tax so charged shall not exceed 15 per cent of the net amount of the management fees after deduction of any amount allowed as expenses against those management fees in computing the tax payable thereon in the first-mentioned Contracting State.

5. Notwithstanding paragraph (2) of this Article, copyright royalties and other like payments in respect of the production or reproduction of any literary, artistic or scientific work (excluding royalties and like payments in respect of cinematograph films and films or tapes for radio or television broadcasting) arising in a Contracting State and which are derived and beneficially owned by a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State.

6. The provisions of paragraphs (1), (2) and (3) of this Article shall not apply if the beneficial owner of the royalties or management fees, being a resident of a Contracting State, has in the other Contracting State in which the royalties or management fees arise, a permanent establishment and the right or property giving rise to the royalties is, or the management fees are effectively connected with a business carried on through that permanent establishment. In such a case, the provisions of Article 8 shall apply.

7. Royalties and management fees shall be deemed to arise in a Contracting State where the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the royalties or management fees, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the obligation to pay the royalties or management fees was incurred and the royalties or management fees are borne by that permanent establishment, then the royalties or management fees shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

8. Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties or management fees paid, having regard to the advice, services, use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention.

1. Capital gains from the alienation of immovable Property, as defined in paragraph (2) of Article 7, may be taxed in the Contracting State in which such property is situated.

2. Capital gains from the alienation of shares in a company incorporated in a Contracting State whose assets consist wholly or mainly of immovable property as defined in paragraph (2) of Article 7 which is situated in that Contracting State may be taxed in that State.

3. Capital gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or movable property pertaining to a fixed base available to a resident of a Contracting State in the other contracting state for the purpose of performing professional services, including such gains from the alienation of such permanent establishments (alone, or together with a whole enterprise) or of such a fixed base, may be taxed in the other State.

4. Notwithstanding the provisions of paragraph (3) of this Article, capital gains derived by a resident of a Contracting State from the elimination of ships and aircrafts operated in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in that Contracting State.

5. Capital gains from the alienation of any property other than those mentioned in paragraphs (1), (2) and (3) of this Article shall be taxable only in the Contracting State of which the alienator is a resident.

6. The provisions of paragraph (5) of this Article shall not affect the right of a Contracting State to levy according to it own law a tax on capital gains from the alienation of any property derived by a person who is a resident of the other Contracting State and has been a resident of the first-mentioned Contracting State at any time during the five years immediately preceding the alienation of the property.

1. Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that Contracting State unless he has a fixed base regularly available to him in the other Contracting State for the p purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.

2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

1. Subject to the provisions of Articles, 18 19 and 21, salaries wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that Contracting State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State.

2. Notwithstanding the provisions of paragraph (1) of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned state if:

3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic may be taxed in the Contracting State of which the person deriving the profits from operation of the ship or aircraft is a resident.

4. In relation to remuneration of a director of a company derived from a company the preceding provisions of this Article shall apply is if the remuneration were remuneration of an employee in respect of an employment and as if references to "employer" were references to the company.

Notwithstanding the provisions of Articles 15 and 16, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which those activities are exercised.

1. Subject to the provisions of paragraphs (1) and (2) of Article 19, pensions and other similar remuneration paid in consideration of past employment to a resident of a Contracting State and any annuity paid to such a resident shall be taxable only in that State.

2. The term "annuity" means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

1. Remuneration, including pensions, paid by the Government of a Contracting State to any individual in respect of services rendered to that Government in the discharge of governmental functions shall be exempt from tax in the other Contracting State if the individual is not ordinarily resident in that other State or (where the remuneration is not a pension) is ordinarily resident in that other State solely for the purpose of rendering those services.

2. The provisions of paragraph (1) of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by the Governments of either of the Contracting States for the purposes of profit.

Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in the first-mentioned State, provided that such payments are made to him from sources outside that State.

A professor or teacher who visits a Contracting State for a period not exceeding two years for the purpose of teaching at a university, college, school or other educational institution in that Contracting State and who is, or was immediately before that visit, a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State on any remuneration for such teaching in respect of which he is subject to tax in the other Contracting State.

1. Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):

2. For the purposes of paragraph (1) of this Article, the term "Fiji tax payable" shall be deemed to include any amount which would have been payable as Fiji tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under-

Provided that relief from United Kingdom tax shall not be given by virtue of this paragraph in respect of income from any source if the income arises in a period starting more than ten years after the exemption from, or reduction of, Fiji tax was first granted in respect of that source.

3. Subject to the provisions of the law of Fiji regarding the allowance as a credit against Fiji tax of tax payable in a territory outside Fiji (which shall not affect the general principle thereof)-

4. For the purposes of paragraphs (1) and (3) of this Article profits, income and capital gains owned by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other Contracting State.

5. Where profits on which an enterprise of a Contracting State has been charged to tax in that State are also included in the profits of an enterprise of the other State and the profits so included are profits which would have accrued to that enterprise of the other State if the conditions made between the enterprises had been those which would have been made between independent enterprises dealing at arm's length, the amount included in the profits of both enterprises shall be treated for the purposes of this Article as income from a source in the other State of the enterprise of the first-mentioned State and relief shall be given accordingly under the provisions of paragraph (1) or paragraph (3) of this Article.

1. Individuals who are residents of Fiji shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom tax as British subjects not resident in the United Kingdom.

2. Individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Fiji tax as Fiji nationals not resident in Fiji.

1. The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirements connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or maybe subjected.

2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities:

Provided that this paragraph shall not prevent the Government of a Contracting State from imposing on the profits attributable to a permanent establishment in that Contracting State of a company which is a resident of the other Contracting State an additional tax not exceeding 15 per cent of two-thirds of the profits of the permanent establishment after payment of the company or corporation tax on those profits.

3. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected.

4. Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any of the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident, nor as conferring any exemption from tax in a Contracting State in respect of dividends paid to a company which is a resident of the other Contracting State.

5. In this Article the term “Taxation” means taxes which are the subject of this Convention.

1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention.

The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

The competent authorities of the Contracting State shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of this Convention or for the prevention of fraud or the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of this Convention. Any information so exchanged shall be treated as secret but may be disclosed to persons (including a court or administrative body) concerned with assessment, collection enforcement or prosecution in respect of taxes which are the subject of this Convention. No information shall be exchanged which would disclose any trade, business, industrial or professional secret or any trade process.

1. This Convention shall come into force on the date when the last of all such things shall have been done in the United Kingdom and Fiji as are necessary to give the Convention the force of law in the United Kingdom and Fiji respectively, and shall thereupon have affect:

2. Subject to the provisions of paragraph (3) of this Article, the Arrangement between the Government of the United Kingdom and the Government of Fiji made in 1950, as amended by the Arrangement made in 1968 (hereinafter referred to as "the 1950 Arrangement"), shall cease to have effect as respects taxes to which this Convention in accordance with the provisions of paragraph (1) of this Article applies.

3. Where any provision of the 1950 Arrangement would have afforded any greater relief from tax any such provision shall continue to have effect for any year of assessment or financial year beginning before the entry into force of this Convention.

1. This Convention shall remain in force until terminated by one of the Governments. Either Government may denounce the Convention by giving notice of termination at least six months before the end of any calendar year after the year 1980. In such event, the Convention shall cease to have effect:

2. The termination of this Convention shall not have the effect of reviving any Arrangement terminated by this Convention.

IN WITNESS WHEREOF the undersigned, duly authorised thereto by their respective Governments, have signed this Convention.

Done in duplicate at Suva this 21st day of November, 1975.

REGULATION

1. Short title
2. Provisional tax on commissions, and on payments for services
3. Recovery of tax
4. Date of payment
5. Deductions deemed to have been consented to by taxpayer
6. Recovery from person under an obligation to deduct tax
7. Exemption from liability to deduct when contract under two hundred dollars in any year
8. Withdrawal of certificate of exemption
9. Collection of advance payments

1. These Regulations may be cited as the Income Tax (Collection of Provisional Tax) Regulations.

2.- (1) For the purpose of assisting persons whose income is derived wholly or partly from commissions received from the selling of any property of whatever nature including insurance on life or property and the sale of books, publications and land, the Commissioner may make such arrangements as he considers appropriate in respect of any particular person or class of persons, which may include instalment deductions at source upon the crediting or payment of such commissions.

(2) To facilitate the payment of provisional tax payable by any person in respect of the profits or gains of the trade, profession or vocation of that person, there shall be deducted from any payment made under any contract for services, but not being a contract of employment, including progress payments under a contract, a sum equal to 15 per cent of such payment. The sum so deducted shall be paid to the Commissioner and shall be treated for the purposes of income tax as not diminishing the payment:

Provided-

(3) For the purpose of facilitating the making of the arrangements referred to in paragraph (1), the Commissioner may, at his discretion, nominate the person who shall be responsible for making the deduction at source of the instalments to be paid in respect of provisional tax and the person so nominated shall make and account for such deductions in such manner as the Commissioner shall require.

3. Where any sum has been deducted by any person under the provisions of these Regulations, such sum shall be deemed to be held in trust for the Crown in accordance with the provisions of section 82 of the Act.

4. Any person who is required to make any such deductions and fails to do so or fails to remit or pay the sum of such deductions to the Commissioner on or before the fifteenth day of the month next succeeding the month in which the payment under the contract was made shall be guilty of an offence and shall be liable to the penalties provided under the provisions of section 93 of the Act.

5. Any sums lawfully deducted under the provisions of these Regulations shall be deemed to have been deducted with the consent of the person otherwise entitled to receive the same and no action shall lie by such person against any other person by reason of the making of such deductions.

6. For all purposes of the Act, any tax to be lawfully deducted under the provisions of these Regulations shall be recoverable in the same manner in all respects as if it were tax payable by the person by whom the payment is made.

Exemption from liability to deduct when contract under two hundred dollars in any year

7. These Regulations shall not require the deduction of provisional tax by any person making payments in respect of contracts for services where the total to be paid to any 1 person in any year is less than $200.

8.- (1) The Commissioner may, if he considers it necessary, withdraw any certificate of exception issued by him in terms of paragraph (b) of the proviso to paragraph (2) of regulation 2.

(2) The Commissioner shall signify his intention to withdraw any certificate by means of notification to that effect published in the Gazette specifying the certificate number and the name of the holder.

(3) The certificate shall be deemed to have been withdrawn any such expiration of 14 days from the date of publication of the notification in the Gazette.

9. These Regulations shall apply mutatis mutandis to the collection of advance payments of tax from companies.

REGULATION
1. Short title
2. Chief Accountant may deduct tax
3. When assessment deemed final and conclusive
4. Saving

1. These Regulations may be cited as the Income Tax (Deductions from Pensions) Regulations.

2. Where, whether before or after 17 February 1950, the assessment of any payments on account of any pension in respect of past services with the Government of Fiji has become final and conclusive and the tax assessed or any part thereof remains unpaid for a period of 3 months from the date of such event, the Chief Accountant may, in his discretion, deduct the tax due by instalments or otherwise from payments made on account of such pension.

3. For the purposes of these Regulations, the assessment shall be deemed to have become final and conclusive-

4. These Regulations shall not derogate from any other remedy for the recovery of tax.

REGULATION

1. Short title
2. Interpretation
3. Secretary
4. Application for registration
5. Certificate of registration
6. Register of tax agents
7. Notification of cancellation of registration
8. Notice of appeal
9. Service of notices, etc.

3. - (1) The Board shall have a Secretary who shall be an officer of the Commissioner appointed by the Commissioner.

(2) The Secretary shall attend all meetings of the Board and shall keep a record of the proceedings of the Board.

(3) All correspondence to the Board, including applications under the Act or these Regulations, shall be addressed to the Secretary in the care of the Commissioner of Inland Revenue in Suva.

(4) Any certificate or other instrument given or issued by the Board shall be sufficiently authenticated if signed by the Secretary on behalf of the Board.

4. - (1) An application for registration as a tax agent shall be in a form approved by the Board for that purpose and shall be accompanied by a fee of $5 which shall be paid into the Consolidated Fund.

(2) An applicant shall furnish the Board with any additional information it may require for the purpose of considering his application.

5. - (1) Where the Board registers a person as a tax agent it shall issue a certificate of registration to that person and shall notify the Commissioner accordingly.

(2) The Board may, be reason of cancellation of the registration of a tax agent, by notice in writing, call upon any person to whom a certificate has been issued or, if that person has died, his personal representative to return such certificate to the Board within 14 days after the service of the notice.

6. - (1) The Board shall keep and maintain a register of the persons registered as tax agents and shall, as soon as convenient after 30 June in each year, caused to be published in the Fiji Royal Gazette the full names and addresses of all persons so registered.

(2) Every tax agent shall forthwith give notice in writing to the Secretary of any change in his address for service of notices and other communications.

7. - (1) Subject to paragraph (2), where the Board cancels the registration of any tax agent in terms of subsection (1) of section 54G of the Act, the Board shall forthwith give notice of the cancellation to the tax agent and to the Commissioner and shall cause notice of the cancellation of the registration to be published in the Fiji Royal Gazette.

(2) Notice of the cancellation of the registration of a taxi agent shall not be published in the Fiji Royal Gazette until the cancellation has taken effect in accordance with subsection (2) of section 54G of the Act.

8. - (1) Where any person files an appeal under section 54H of the Act, he shall serve a copy of the notice of appeal on the Secretary on the same day as the notice of appeal is filed with the Minister.

(2) The Board shall furnish to the Commissioner a copy of any notice of appeal served on the Board under paragraph (1).

9. Any notice or other communication to any person by or on behalf of the Commissioner or the Board in relation to any matter arising under Part VIIA of the Act or of these Regulations may be served upon him personally or by sending it by pre-paid letter post to his last known address and shall be deemed to have been received by the addressee within 28 days of the date of posting.

END NOTES

*Paragraph (q) in force 1 January 1986 (Act 23 of 1985. s.8) but for convenience included in the 1985 Revision.

Fiji Legislation

Income Taxt Act [Cap 201] - Subsidiary Legislation