WILLEMSTAD - The Tax Department is shifting its focus to collecting from business clients, who are responsible for about 95 percent of total tax revenues. A small group, just 0.3 percent of companies and individuals with tax debt, accounts for one-third of the total debt owed to the Tax Department, amounting to over one billion guilders out of the 3.2 billion that the government still needs to collect.
Conversely, this means there is a large number of individuals with relatively small debts. Consequently, collectors often lack the time to pursue business clients, leading to increasing debt burdens among companies.
Key conclusions can be drawn from these figures. The largest debt burden is carried by a relatively small group of just 334 taxpayers, who together account for 32 percent of the total outstanding balance. This shows a high concentration of debt among a small number of taxpayers.
The majority of taxpayers (nearly 70,000 or 64 percent) have an outstanding debt of less than 5,000 guilders. Although this group represents the majority of taxpayers, they contribute only 3.3 percent to the total balance.
The categories of 100,000 – 500,000 NAF and 10,000 – 50,000 NAF include over four thousand and 24 thousand taxpayers, respectively, and account for significant portions of the total balance (almost seven percent and sixteen percent, respectively). This highlights the impact of middle-class debt on the total debt burden.
To address this issue, a special team has been established to focus on individual clients with debts up to a maximum of NAF 10,000. By handling individuals separately, regular collectors can now focus more on business clients.
The emphasis is now on ensuring that business owners comply with their monthly payments of turnover and payroll taxes and social security contributions. This prevents further debt accumulation. Additionally, collection guidelines have been established to ensure that all clients are treated equally. Debt repayment is based on the entrepreneur’s repayment capacity.
Team 'Individuals'
The 'individuals' team consists of eight employees and a coordinator. They serve over 60,000 clients, representing more than half of the total number of taxpayers with debts. The total outstanding debt in this group amounts to 145 million guilders, only 4.5 percent of the total outstanding debt of 3.2 billion guilders.
In addition to the establishment of the 'individuals' team, the customer service department has been expanded. This department has taken over many simple collection tasks, including providing information on outstanding debts, issuing debtor cards, and making simple payment arrangements. These adjustments make it easier for clients to contact the tax department and resolve their tax debts.