WILLEMSTAD – The total amount of outstanding tax and social premium debts in Curaçao has once again risen to around 3.2 billion guilders, exceeding the island’s annual tax and premium revenues. This was stated by Hans Hoogervorst, chairman of the College financieel toezicht Curaçao en Sint Maarten (Cft), during a press conference on Wednesday.
In the government’s public response following consultations with the Cft, the Tax Department is described as the main area of concern, but no concrete figures are provided. According to the Cft, the size of the collection backlog initially fell sharply in early 2023, from 5.6 billion to 2.6 billion guilders, after a major clean-up operation. Since then, however, the outstanding balance has steadily increased again to approximately 3.2 billion guilders.
As a result, the total open tax debt now exceeds Curaçao’s annual revenues from taxes and social premiums. The Cft warns that structural improvements at the Tax Department are progressing too slowly and continues to push for a more effective and legally sound approach to tax collection.
The oversight body also points to ongoing problems related to integrity and significant backlogs in financial processing, which continue to undermine confidence in the system and hamper effective enforcement.
In a separate government statement following the talks with the Cft, the Tax Department is explicitly identified as the most pressing concern. The statement refers to delays and integrity issues that require urgent attention, but again stops short of quantifying the scale of the problem.
Minister of Finance Charles Cooper said that concrete actions have already been initiated by the ministry, together with the management of the Tax Department and the Receiver’s Office, following the meeting with the Cft. Responding to these assurances at the press conference, Hoogervorst remarked cautiously: “We will see.”
The government’s statement does not mention the size of the outstanding tax debt, nor does it refer to the Cft’s conclusion that the open balance now exceeds annual tax revenues. According to the Cft, more effective tax collection is essential to structurally increase revenues and eventually create room for possible tax reductions.
A fair and transparent tax system, in which everyone contributes according to the rules, is crucial for sustainable public finances and for maintaining public trust and compliance, the Cft stressed.