WILLEMSTAD - According to the Minister of Finance, Javier Silvania, the size of the collection portfolio serves as an indicator of the effectiveness of the Tax Authority. A consistent growth in the collection portfolio signifies inadequate control over internal processes. The minister says that only through collaboration among all segments of the Tax Authority can an annual reduction of 10% in the collection portfolio be achieved (excluding migration of new resources + initial cleanup at the beginning of 2023).
Status as of the end of June.
The size of the active collection portfolio was significantly reduced earlier this year through adjustments in the collection policy regarding assessments for tax years 2017 and prior. It is crucial to ensure that the collection portfolio does not increase in size once again. This can be achieved in part by a combination of measures that will be implemented starting from September 1st, including:
Expansion of the number of collectors.
Redistribution of customer portfolios, with a focus on prioritizing collection from business taxpayers.
Introduction of dashboards to assist collectors and bailiffs in prioritizing collection actions.
Additionally, it is of great importance for the Tax Authority to operate more as a unified organization. If a debt collector determines that a business no longer exists, this should serve as an indication for the inspector to cease issuing (estimative) assessments. When an objection is lodged with the inspector, it should signal to the receiver to halt collection actions until the objection is resolved. In March of this year, a monthly team leaders meeting was established. For this meeting, all first-line managers from the Tax Inspection, the Receiver, and a representative from SBAB were invited. During this meeting, the achievement of objectives was discussed, along with any obstacles that hinder the attainment of these objectives. The cause of an obstacle often lies within another part of the organization and, in some cases, even outside of the organization. The team leaders meeting facilitates the resolution of such obstacles and provides the team leaders with a broader view of the overall functioning of the Tax Authority. Four meetings have taken place so far, and the participants' feedback has been very positive.
The current approach has not yet yielded the desired results. Since January, the size of the collection portfolio (GOS stands for 'Integrated Receiver System') has increased by 13% instead of the intended reduction:
Currently, the implementation of measures, as described above, is being prepared, which should reverse this trend starting from September 1st.