WILLEMSTAD - The tax office of Curaçao is implementing a stricter approach against companies that persistently fail to meet their tax obligations. This action follows the announcement of additional efforts to improve tax compliance. Since then, the tax office has taken measures, in collaboration with customs and the Social Security Bank (SVB), to encourage businesses to fulfill their monthly obligations.
According to the tax office, these efforts have yielded positive results. The number of companies paying monthly turnover tax has increased from over 4,000 to more than 6,000, a nearly fifty percent rise. Similarly, the number of companies submitting monthly payroll tax payments has risen by over 25 percent, from 2,700 to more than 3,400. These increases have led to higher tax revenues and more businesses becoming accustomed to meeting their obligations on time.
Delinquent Taxpayers
Despite this progress, some companies continue to systematically ignore their tax payments, sometimes for years, leading to significant tax arrears. To address this issue, the tax office is now implementing a stricter collection policy. This policy includes seizing bank accounts, real estate, and now also business inventories. Furthermore, companies that remain in default may face temporary closure.
In the coming weeks, assets will be seized from dozens of companies that have accumulated substantial arrears and have not complied with their monthly obligations despite repeated warnings. At this stage, businesses will have the opportunity to contact the tax office to arrange payment plans. If this fails, the companies may be closed before the end of the year.
The tax office emphasizes that the goal of these measures is not to shut down businesses but to create a fair playing field for those that pay their taxes correctly. “It is unacceptable for honest entrepreneurs that their colleagues do not pay taxes and continually evade their responsibilities. This creates unfair competition and ultimately forces honest businesses to close their doors,” stated a spokesperson.
According to the tax office, the turnover and payroll taxes involve amounts that entrepreneurs have withheld from customers and employees and therefore do not belong to them. Companies that fail to consistently meet these tax obligations will be closely scrutinized.
The total outstanding payments the tax office still needs to collect amount to over 3.4 billion guilders. This figure is attributed to years of negligence in strictly enforcing the rules and failing to act timely against delinquent taxpayers. In some cases, tax arrears have reached millions.
The tax office will focus on all sectors, with particular attention to the hospitality industry, where prolonged tax arrears are more common. The stricter collection policy will only be applied to companies that refuse to remit due taxes despite repeated warnings and collection notices.
