One of the inquiry team members on the report of Interim Finance Minister Mahendra Chaudhry, Bruce Cowley, maintains, in respect of the Income Tax Act, the committee found that FIRCA's tax assessments were carried out in accordance with the law.
In an interview with Fijivillage News, Cowley said from Brisbane that Chaudhry had penalties imposed on him for not declaring the correct income and these penalties were calculated at the rate of 10% of the unpaid tax.
Cowley added that this is consistent with FIRCA's published policy on the imposition of penalties for undeclared income and its own internal policy for imposing penalties in respect of undeclared interest income.
As for Chaudhry’s overseas accounts, Cowley said the team concluded that it was reasonable for FIRCA to reach the view that the principal monies paid into Chaudhry's account were not taxable because they were paid into that account by the Indian Consul on behalf of a group in India who had collected the funds to assist in his resettlement to Australia following the events of May 2000.
