WILLEMSTAD - Alfonso Trona, the head of the Tax Authority, will remain in his position but will be subject to strict new guidelines, which he will be allowed to develop himself. This was revealed in a letter from Finance Minister Javier Silvania to the head of the Tax Authority, in response to internal audits conducted by the Government Accountants Bureau (Soab) that exposed serious deficiencies in the tax treatment of certain groups.
Since the inception of the Pisas cabinet in June 2021, multiple internal audits have been conducted. These investigations unveiled inadequate internal control measures at the Tax Authority, leading to unfair preferential treatment. Trona is now required to draft an improvement plan within two weeks.
Trona is also tasked with developing a code of conduct for all tax authority employees, including managers. This is to be completed within four weeks and includes training to enhance resilience against incorrect instructions.
Furthermore, an assessment model will be introduced to determine the payment capacity of taxpayers fairly. This model will be uniformly applied by all collectors and is expected to contribute to a fairer tax system, according to Silvania.
Moreover, audits by Soab will continue and be intensified. An information campaign is also planned to inform the public about tax collection policies and rules. Additionally, a hotline will be established for taxpayers "where they can turn if they feel unfairly treated."
No Support
These steps follow a turbulent period during which a proposal to suspend Trona was not supported by the Council of Ministers. Trona's continued presence, despite the criticism, underscores the complexity of the situation. It was previously reported that politicians fear Trona may reveal their own preferential treatment.
An initial proposal by Silvania to deny Trona access to his workplace was rejected in the Council of Ministers. Vice Prime Minister Ruthmilda Larmonie-Cecilia of the PNP party, among others, opposed it, arguing that Trona had been humiliated by the Finance Minister, but - as it turned out - she had not yet read the Soab reports.
Problematic
The measures are steps toward more control and transparency within the tax authority. By introducing a calculation model for determining payment capacity and conducting internal audits, measures are being taken to limit arbitrariness and rein in the tax collector's discretionary powers. Furthermore, the introduction of a code of conduct and regular staff training underscores the importance of compliance with rules and procedures.
However, allowing Trona, despite previous shortcomings and the lack of action following previous audits, to remain in office and even be tasked with leading the improvement efforts may be seen as problematic.
This raises questions about the effectiveness of these measures and whether they are sufficient to effectively control discretionary powers. It also raises concerns about the potential continuation of problematic governance under his leadership.
Allowing Trona to develop a plan to address the mistakes that occurred under his watch and were not previously corrected could be seen as a missed opportunity to truly be held accountable and implement the necessary structural changes. This could ultimately undermine public confidence in the integrity and effectiveness of the tax authority.