WILLEMSTAD - The Tax Authority of Curaçao is under intense scrutiny following recent revelations of widespread arbitrariness and favoritism towards certain taxpayers. Reports from the government's audit office, Soab, recently made public by Minister of Finance, Javier Silvania, have shed light on practices that have gone undocumented for years, painting a concerning picture of the organization's operations. 

Covering the period from 2020 to September 2023, the reports highlight a culture of arbitrariness in granting tax benefits and payment arrangements. Concerns have been raised over advance payments on refunds to civil servants and political figures, allegedly made without legal basis and at the personal discretion of Director Alfonso Trona. This raises serious questions about the integrity of tax collection processes. 

Moreover, the reports indicate a lack of supervision and compliance with collection measures, potentially leading to the accumulation of tax debts and non-compliance with payment arrangements. 

The core of the issue lies in the discretionary powers wielded by the Receiver, reportedly abused due to a lack of transparency and documentation. Instances of disproportionate debt settlements and the absence of justification for such decisions further underscore the severity of the situation. 

In response to these findings, Finance Minister Javier Silvania has stressed the need for a comprehensive review of procedures within the Tax Authority. Criticism has also been directed at the Receiver's approach by the Public Prosecutor's Office, particularly concerning the absence of means tests in payment arrangements. 

The Soab report not only highlights specific cases of preferential treatment but also criticizes the overall practices of the Tax Authority. Deficiencies such as the absence of updated work instructions, incomplete collection files, and a lack of accountability for deviations from payment arrangements have been identified. 

The report calls for an urgent overhaul of policies and procedures within the Tax Authority to ensure the legality and effectiveness of tax collection. Minister Silvania has urged parliament to convene an urgent meeting to address these issues promptly. 

These revelations have sparked public outrage and raised concerns about the fairness and equality of the tax system in Curaçao. While steps have been announced to halt unfounded advance payments from January 2024 and introduce new procedures, the effectiveness of these measures remains to be seen.