WILLEMSTAD – The College financieel toezicht has once again raised serious concerns about the functioning of Curaçao’s Tax Department, warning that ongoing shortcomings are undermining the reliability of the country’s public finances. The warning is contained in the Cft’s advisory opinion on the approved 2026 budget.
According to the supervisory body, a properly functioning and integrity-driven Tax Department is essential for effective tax collection and, by extension, for maintaining a sound and credible budget. As long as tax assessment, collection, and enforcement remain inadequate, government revenues will remain uncertain and policy implementation will be at risk.
The Cft’s concerns are reinforced by findings from the Algemene Rekenkamer Curaçao, which concluded that approximately 3.1 billion guilders in old tax assessments up to and including 2017 were taken out of collection in 2023 without a lawful basis. This concerns a very substantial amount in tax claims that were effectively written off.
The supervisory board has again requested that Minister of Finance Charles Cooper provide clarity on the progress of improvement measures at the Tax Department and offer updated insight into the current volume of outstanding tax receivables. According to the Cft, this information is essential for properly assessing the country’s financial position.
The Cft warns that without structural improvements to the Tax Department, risks to public finances will remain high. Strengthening tax collection and enforcement is described as a prerequisite for stable and controllable financial policy.
Reform efforts under the Landspakket have formally begun, according to the latest implementation agenda. Initial steps include improvements in inspection and collection processes, data clean-up, and a reform plan for the tax collection authority. However, key components of the reform are still awaiting political decision-making. The new organizational structure and further reforms are partially stalled due to the need for formal political approval.
Modernization of ICT systems and the introduction of data analysis and risk-based controls have also been delayed, with full implementation now projected to run through 2027. In addition, a final reform plan for Customs has yet to be approved, despite customs modernization being an integral part of the Landspakket.
Overall, the report indicates that while reform of the Tax Department has started, it has not yet reached full momentum and remains heavily dependent on political decision-making and broader organizational renewal within government.