AF439

Advanced Issues in Contemporary Taxation

Course Content

MODULE 1
INTRODUCTION TO TAX ADMINISTRATION

Module 1 will introduce Tax administration regime in Fiji. The structure, design and evolution
of the tax system will be explained. It will provide a comprehensive overview of taxation cycle
of registration, filing of returns, assessment process, payment obligations, objections process,
legal redress mechanisms, as well as rulings. The module will also provide an overview of
major tax policy changes in Fiji over the last 20 years as well as reforms on tax administration.
The course will provide salient features of Fiji’s Income Tax Act, in particular taxation
principles relating to Personal Income Tax, Corporate Income Tax, International Taxation and
Value Added Tax. The details of tax administration and tax policy topics covered in Module 1
will be captured in detail all the later modules.

Reading Materials:
 AF439 Course Book Chapter on Tax Administration
 Tax Policies (2000 to 2021)

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Fiji’s National Budget Documents

Legislation:
 FRCS Act, Income Tax Act, Tax Administration Act and Value Added Tax Act.

Suggested Study Time: 12 hours

AF439 Course Content – Trimester 2/2021 Page 1

MODULE 2

PERSONAL INCOME TAX

Module 2 we will look at the principles of Personal Income Tax. The Personal income tax
largely revolves around taxation of incomes derived by individuals whether through
employment or through non employment sources. It also deals with taxation or partnerships,
trusts and estates. The first part of this module will cover PAYE tax regime and the second
part will deal with business returns required from individuals for non-employment income
sources. Taxation principles for Partnerships, Trusts and Estates will also be discussed. The
Module will explain key concepts of residency and source before proceeding to explain the
operation of the PAYE Final Tax Regime in Fiji.

Reading Materials:
 AF439 Course Book Chapter on Personal Income Tax – Written by Fazrul Rahman
 Policy Paper on PAYE As A Final Tax – Written by Fazrul Rahman
 Fijian Case Laws on Personal Income Tax

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Australian Master Tax Guide Chapters on Personal Income Tax

Legislation:
 Income Tax Act
 Tax Administration Act
 Income Tax (Employment) Regulations

Suggested Study Time: 12 hours

AF439 Course Content – Trimester 2/2021 Page 2

MODULE 3

CORPORATE INCOME TAX

Module 3 will provide details of income taxation regimes for companies. It will discuss the
concepts of residency, source, gross income, allowable deductions and rules regarding the
lodgment of company tax returns as well as all other tax obligations. Key tax accounting
concepts such as deferred tax assets and liabilities will be refreshed as well as the
accounting standards for income tax. The upcoming income tax self-assessment regime will
also be discussed. An important area that will be examined under Corporate Income
Taxation is the Dividend Tax regime.

The Corporate Income Tax Module will also discuss various tax incentives that are offered
to business and how these impact tax accounting rules. The module will make extensive
reference to Fiji’s Income Tax to discuss new provisions that were introduced.

Reading Materials:
 AF439 Course Book Chapter on Corporate Income Tax – Written by Fazrul Rahman
 Policy Paper on Income Tax Self-Assessment – Written by Fazrul Rahman
 Fijian Case Laws on Corporate Income Tax

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Australian Master Tax Guide Chapters on Corporate Income Tax
 Accounting Standards on Income Tax

Legislation:
 Income Tax Act
 Tax Administration Act
 Income Tax (Incentives) Regulations

Suggested Study Time: 12 hours

AF439 Course Content – Trimester 2/2021 Page 3

MODULES 4 and 5

INTERNATIONAL TAXATION

Modules 4 and 5 will provide an extensive coverage into international taxation issues. It will
make explicit reference to provisions such as Transfer Pricing, Thin Capitalization Rules,
Foreign Tax Credit and Permanent Establishment rules as provided for in the Income Tax Act.
The Double Tax Agreement provisions will also be explored and the significance of DTAs will
be explained including the advance issues on tax treaties. The course will cover emerging
issues on international taxation such as 15 taxation issues as part of the OECD’s Base Erosion
and Profit Shifting project. International Tax Frameworks will also be discussed.

The International Tax module will make reference to landmark cases on transfer pricing and
will highlight areas of improvement in Fiji’s Transfer Pricing Regime.

Reading Materials:
 AF439 Course Book Chapter on International Tax – Written by Fazrul Rahman
 OECD Model Tax Convention
 OECD Transfer Pricing Guideline
 OECD Base Erosion and Profit Shifting 15 Action Points
 Fiji’s Double Tax Agreements

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Australian Master Tax Guide Chapters on International Tax

Legislation:
 Income Tax Act
 Tax Administration Act
 Income Tax (Exempt Income) Regulations

Suggested Study Time: 12 hours

AF439 Course Content – Trimester 2/2021 Page 4

MODULE 6

VALUE ADDED TAX

In Module 6, we examine the operation of the Value Added Tax (VAT). Concepts such as
destination principle, VAT Reverse Charge, Taxable supplies, Exempt Supplies and Zero
Rated Supplies will be looked at. The module will commence with the discussion on the
principles of VAT and then will explain types of sales tax regime as well as types of VAT
regimes. Extensive reference will be made to Fiji’s Value Added Tax Act as well as case
laws.

The module will also touch on the key features of the draft VAT Bill that was released for
public consultations last year.

Reading Materials:
 AF439 Course Book Chapter on Value Added Tax – Written by Fazrul Rahman
 Case Laws on VAT

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Australian Master Tax Guide Chapters on Goods and Services Tax

Legislation:
 Value Added Tax Act (primary law)
 Income Tax Act
 Tax Administration Act
 VAT Regulations

Suggested Study Time: 12 hours

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MODULE 7

CAPITAL GAINS TAX AND FRINGE BENEFITS TAX

In module 7, we will examine the operation of Capital Gains Tax and Fringe Benefits Tax
regimes in Fiji. As a backgrounder, the course will have discussed the fundamentals of CGT,
the CGT Decree 2012 and the CGT provisions as contained in the Income Tax Act. The
Module will also discuss various case laws on CGT that has featured in courts prior to the
introduction of Income Tax Act 2015. The Module will also draw materials from Fiji’s National
Budget to explain the required reforms that were introduced in the CGT regime in 2020. The
Fringe Benefit Tax Regime will provide an overview of rules governing non cash benefits
received by employees. The connection between Fringe Benefits Tax and the Personal
Income Tax will be explained.

Reading Materials:
 AF439 Course Book Chapter on Capital Gains Tax – Written by Fazrul Rahman
 Case Laws on CGT

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Australian Master Tax Guide Chapters on Capital Gains Tax and Fringe Benefits
Tax

Legislation:
 Income Tax Act
 CGT Decree 2012
 Tax Administration Act

Suggested Study Time: 12 hours

AF439 Course Content – Trimester 2/2021 Page 6

MODULE 8

SPECIAL TAX REGIMES

In module 8, we will be examining special tax regimes such as the:

 Social Tax Responsibility Tax;
 Presumptive Income Tax; and
 Mining Tax Regime.

The module will also cover taxation of superannuation and insurance as well as Non
Resident International Shipping Income Tax. A number of Tax incentives will also be
discussed.

Reading Materials:
 AF439 Course Book Chapter on Special Tax Regimes – Written by Fazrul Rahman
 Policy Paper on Tax Incentives – Written by Fazrul Rahman

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Australian Master Tax Guide

Legislation:
 Income Tax Act
 Value Added Tax Act
 Tax Administration Act

Suggested Study Time: 12 hours

AF439 Course Content – Trimester 2/2021 Page 7

MODULE 9

ANTI AVOIDANCE

In module 9, the anti-avoidance rules will be examined. These rules relate to the termination
of tax advantages enjoyed by taxpayers through tax planning. The concepts of tax evasion,
tax avoidance and tax planning will be explained in detail.

The Module will cover both the specific and general anti avoidance rules and will discuss the
application of such provisions. The specific anti avoidance rules such as income splitting,
asset splitting, etc. will be explained in detailed whilst general schemes to avoid tax will be
referred to.

Reading Materials:
 AF439 Course Book Chapter on Anti Avoidance – Written by Fazrul Rahman

Supplementary Readings:
 Fulcher P. 1999. Fiji Income Tax Law. Institute of Justice & Applied Legal Studies,
Suva.
 Australian Master Tax Guide Chapters on Anti Avoidance
 OCED Base Erosion and Profit Shifting Action Plan
 Panama Papers
 Paradise Papers

Legislation:
 Value Added Tax Act
 Income Tax Act
 Tax Administration Act

Suggested Study Time: 12 hours

AF439 Course Content – Trimester 2/2021 Page 8