WILLEMSTAD - In a strict move against tax evasion, the Curaçao Tax Authority closed down a local hospitality business last week due to a significant unpaid tax debt. This closure is part of a tougher enforcement campaign targeting business owners who consistently fail to meet their tax obligations. According to the Ministry of Finance, the temporary closure is intended as a final warning, urging business owners to resolve their debts before a forced auction is initiated.
Currently, the tax authority's collection database lists over 116,000 debtors, with a combined debt of 3.3 billion guilders, a figure that represents more than 150 percent of the annual tax revenue. Although not all outstanding debts are collectible, a significant portion remains overdue, especially in sales tax and payroll tax, which have risen by millions since January 2023.
The tax authority has selected an initial group of 30 businesses, including restaurants and car dealerships, that have not remitted sales tax for years. Some of these businesses have failed to pay taxes since 2015 and continue to ignore their obligations, despite previous asset seizures.
For the affected business, this temporary closure follows a warning, a seizure of assets, and the failure to establish a payment plan. The Ministry highlights that this action aims to prevent personal liability for the business owner in the event of a final auction and to protect the competitive position of compliant taxpayers.
The tax authority offers a debt relief program for business owners who meet their obligations consistently over a 48-month period, allowing a portion of their debt to be forgiven. The Ministry emphasized that these closures are applied carefully, aiming to curb tax evasion and protect public services.