WILLEMSTAD – Curaçao’s tax administration remains under heavy scrutiny after financial supervisors repeated concerns about irregular practices and weak enforcement at the Tax Office.
In its latest half-year report, the Committee Financial Supervision (Cft) said it remains seriously concerned about how Curaçao’s Tax Office functions, despite rising tax revenues since 2021.
The concern follows a 2024 investigation by Stichting Overheidsaccountantsbureau (SOAB), which found unauthorized preferential treatment in tax enforcement and non-compliance with legal frameworks.
The findings were significant because they point to unequal treatment among taxpayers and weaknesses in tax collection systems.
According to the Cft, these issues create risks for public trust in the tax system.
If taxpayers believe some individuals or companies receive special treatment, it can undermine tax morale and reduce willingness to comply.
That directly threatens government revenues.
The watchdog says Curaçao already has advanced plans ready to modernize and reorganize the Tax Office.
The government indicated in 2025 that implementation would begin in the second half of the year.
But according to the Cft, despite repeated requests, no progress updates were provided during that period.
That lack of communication has increased concern.
Tax reform is seen as critical for Curaçao because government revenues remain highly dependent on efficient collection systems.
Any weaknesses in tax administration could affect budget stability, especially as the government enters 2026 with only a small projected surplus.
The Cft is now calling on the Council of Ministers to make tax reform a top priority.
The report makes clear that financial health is not just about how much money comes in, but also about whether the system collecting it is fair, transparent and legally sound.