Question 1 Taxation and penalties: Evidence from Fiji Tax Authorities have become increasingly aggressive in demanding fixed penalties. The fines imposed or the sums demanded for compounding Customs offences and late tax lodgments are sometimes the maximum penalty a taxpayer must pay on conviction. Courts generally do not impose maximum penalties on first offenders or for minor errors, it may now be more economical to go to Court than to pay a fixed penalty. Critically analyze the above statement with reference to the Fiji Revenue and Customs Services regulations on fixed penalties.

Only Literature / Main Findings (6 marks)