Bribes and inducement payments made to government officials, both local and foreign, will not be tax deductible in Fiji from next year.
The Fiji Times reports that the measure comes after it was discovered that some companies had filed for tax deductions for bribes paid to government officials and the Fiji Customs and Revenue Authority was obliged to allow them.
The Authority's general manager revenue collection, Madhu Sudhan, is quoted as saying the matter came to light when they were auditing one of the large companies operating in Fiji.
Mr Sudhan says as a matter of public policy they do not now allow tax deductions for bribes and inducements made to officials.
Until now expenses incurred for the purpose of deriving income, including bribes, have been tax deductible, because refusing them could have been challenged in court.
But under provisions introduced in the 2006 budget tabled last Friday, such payments will not be eligible for tax deductions