Tax Debt Cancellation Case Moves to Supreme Court for Review

WILLEMSTAD – The controversial tax debt cancellation issue, involving Minister of Finance Javier Silvania, is set to be reviewed by the Supreme Court of the Kingdom of the Netherlands. This follows an announcement that the Attorney General of the Supreme Court intends to file a cassation appeal in the interest of the law regarding the legal, financial, and political ramifications of the case. 

At the heart of the issue is whether taxpayers can appeal tax assessments based on a Facebook post by Minister Silvania. The post in question, later modified, stated that the tax collector's database was being cleaned up and that outstanding tax debts from 2017 and earlier would no longer be collected. 

Legal Battle Over Tax Appeals 

The Supreme Court’s review stems from an August 10, 2023, ruling by the Joint Court of Justice of the six Caribbean territories. The case revolves around whether appeals against tax assessments should be considered inadmissible if taxpayers based their claims on the minister's public statements. 

Silvania, a member of the ruling MFK party, had initiated a policy revision in early 2023, leading to the removal of old tax debts from the system. Throughout the year, he consistently posted updates on Facebook, informing taxpayers that debts from 2017 and earlier would not be actively pursued. He also encouraged individuals to request a debtor’s list from the Tax Collector’s Office to verify whether their outstanding debts had been cleared. 

The Joint Court ruled that the minister’s clear and repeated statements on Facebook and in newspapers allowed taxpayers to reasonably assume that their outstanding tax debts had indeed been cancelled. The ruling also noted that a specific back tax assessment from January 30, 2023, had already been written off and was no longer listed in official tax records. 

Political and Legal Fallout 

Silvania’s actions sparked outrage, particularly given the massive financial impact of an estimated 3 billion guilders in uncollected tax revenue. The issue also led to political friction, not only among opposition parties PAR and MAN, but also within the then-ruling coalition, where MFK’s partner, PNP, openly questioned whether the minister had committed potentially criminal offenses. 

The controversy took a legal turn when court documents revealed that the Curaçao Public Prosecutor’s Office (OM) had launched a judicial fact-finding investigation into the case. However, the current status of this investigation remains unknown. 

With the case now reaching the Supreme Court, its final ruling could have far-reaching implications for tax policy, governance, and ministerial accountability in Curaçao.




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