WILLEMSTAD – Former Finance Minister Javier Silvania has publicly released a letter signed by Curaçao's Tax Collector, Alfonso Trona, showing that Trona himself recommended removing outstanding tax assessments relating to 2017 and earlier years from active collection.
The document, dated January 20, 2023, was addressed to Silvania in his capacity as Minister of Finance and outlines a proposal to substantially reduce the government's outstanding tax collection portfolio.
Silvania published the letter on social media in response to the ongoing controversy surrounding the removal of billions of Caribbean guilders in outstanding tax debts and questions about who was responsible for the policy.
The former minister argues that the document demonstrates that the initiative was recommended by Trona rather than independently introduced by the political leadership of the Ministry of Finance.
"Trona advised the Minister of Finance not to collect tax debts from 2017 and earlier. Here is the proof, a letter bearing Trona's signature," Silvania stated in his social media message.
He also accused Trona of attempting to shift responsibility for the policy onto him.
According to Silvania, the letter had previously been submitted to Curaçao Parliament and was already a public document.
Letter Reveals Proposal to Reduce Tax Portfolio by Billions
The January 20, 2023 letter, titled "Policy for Cleaning Up the Tax Collection Portfolio," provides details about the proposed restructuring of outstanding tax assessments.
Trona explained that the Council of Ministers had agreed on August 24, 2022, to proceed with a cleanup of the tax collection portfolio under case number 2022/018.846.
The original approach was based on the dates of tax assessments, together with additional criteria outlined in a previous letter dated December 6, 2022.
According to Trona, applying that approach would reduce the outstanding collection portfolio from approximately 5.5 billion Netherlands Antillean guilders to approximately 4.2 billion.
However, Trona questioned whether the reduction would be sufficient to allow the Tax Collector's Office to focus effectively on more recent tax obligations.
He subsequently recommended a more extensive one-time cleanup involving assessments relating to tax year 2017 and earlier.
The letter makes clear that the proposal originated from concerns about the enormous volume of outstanding assessments and the limited administrative capacity available to collect them.
Six Measures Proposed by Trona
In the document, Trona outlined six measures intended to reduce the collection portfolio and improve the effectiveness of tax administration.
The central proposal involved removing assessments relating to tax year 2017 and earlier from active collection.
Other proposed measures included clearing older negative assessments involving refunds or reductions, removing certain COVID-19-related tax assessments from collection, and addressing assessments that had been proposed as uncollectible but had not yet received formal approval.
The COVID-19-related measure concerned turnover tax assessments for April and May 2020 and social insurance contributions for April through June 2020.
Trona also proposed granting tax credits of up to 2,500 Netherlands Antillean guilders for certain assessments between one and five years old.
A final measure involved clearing small outstanding balances of less than 50 guilders per assessment.
These proposals were presented as administrative measures intended to improve the efficiency of tax collection.
Trona Acknowledged Financial Risks
The letter also demonstrates that Trona recognized the potential financial consequences of removing older assessments.
He reported that assessments relating to tax year 2017 and earlier had generated approximately 135 million Netherlands Antillean guilders in revenue during 2022.
Removing those assessments from active collection could therefore eliminate a source of government revenue.
Trona also warned that taxpayers who had consistently fulfilled their obligations might react negatively if individuals with outstanding debts benefited from another cleanup following an earlier tax relief arrangement.
Nevertheless, he argued that the advantages of reducing the collection portfolio outweighed the administrative burden of continuing to pursue large numbers of older assessments.
According to the letter, the proposed measures would reduce the outstanding balance by more than half.
This would allow collection officers to concentrate on newer assessments, which generally have a higher probability of successful collection.
Trona also recommended that the Tax Collector's Office actively pursue assessments relating to 2018 and later and closely monitor ongoing tax obligations, particularly among business taxpayers.
The proposed cleanup was described as a one-time measure, after which quarterly reviews would be conducted to prevent the collection portfolio from becoming outdated again.
Silvania Challenges Trona's Account
The publication of the letter comes amid growing scrutiny of decisions made within Curaçao's tax administration.
Silvania's position is that Trona cannot now place responsibility for the removal of older tax assessments entirely on the former minister when the Tax Collector himself submitted a written recommendation supporting the measure.
The document supports the narrower factual point that Trona formally proposed a substantial cleanup of the tax collection portfolio.
However, it does not by itself establish which measures were ultimately approved, how they were implemented, or whether every subsequent administrative decision complied with the applicable legal requirements.
The distinction between recommending a policy, approving it and carrying it out remains important.
The January 2023 letter specifically requested the minister's approval for the proposed measures.
It therefore provides evidence of the administrative advice given to the minister but does not independently establish the final approval or execution of the entire proposal.
Questions About Responsibility Remain
The newly circulated document adds an important element to the public debate about the removal of outstanding tax assessments.
It shows that the Tax Collector's Office itself recognized the limitations of pursuing older debts and recommended a major restructuring of the collection portfolio.
At the same time, the letter raises further questions about the decisions that followed.
Did the minister formally approve all six measures? Were additional conditions imposed? Were the same criteria applied consistently to taxpayers? And how did the eventual implementation compare with the proposal submitted by Trona?
Those questions are particularly relevant as government auditing foundation SOAB continues to face public scrutiny over its findings concerning tax administration.
Silvania's publication places renewed attention on the documentary record and the division of responsibility between the Ministry of Finance and the Tax Collector's Office.
The letter establishes that Trona recommended the cleanup. Determining responsibility for the final policy and its implementation requires examination of the subsequent ministerial decisions and administrative records.