WILLEMSTAD – MFK Member of Parliament and former Minister of Finance Javier Silvania has outlined two legal options that he says could quickly resolve the ongoing dispute over police officers being excluded from the overtime tax exemption introduced under the Bion Law.
In a letter addressed to Minister of Finance Javier Cooper and Minister of Justice Shalten Hato, Silvania argues that the current situation can be corrected either by making use of an existing provision within the law or by amending the legislation itself.
The proposals come amid growing dissatisfaction within the Curaçao Police Force (KPC), where officers have reportedly been informed that they are not eligible for the tax exemption on overtime pay, despite expectations that they would benefit from the measure.
Option One: Use the Hardship Clause
Silvania's preferred solution is for the Minister of Finance to invoke Article 9 of the Bion Law, commonly referred to as the hardship clause (hardheidsclausule).
According to Silvania, the provision gives the Minister of Finance the authority to deviate from the strict application of the law in cases where enforcing it as written would create an unfair situation for a particular group of employees.
The article allows the minister, after consultation with the Minister of Social Development, Labor and Welfare and the Tax Inspector, to address cases of what the law describes as "serious inequity."
Silvania said the hardship clause was intentionally included in the legislation to deal with unforeseen situations that could arise during implementation.
He noted that while serving as Minister of Finance, he sought advice on the Bion Law from the Tax Inspectorate, the Receiver's Office, the Fiscal Affairs Department, the Ministry of Finance, the Department of Legislation and Legal Affairs (WJZ), and the Council of Advice before publishing the law.
Although those consultations identified several shortcomings in the legislation, Silvania said he decided to publish the law because it had already been approved by Parliament.
"I knew there were deficiencies," he explained in his letter, "but I also knew the hardship clause would provide the flexibility needed to solve implementation problems."
He also referred to a legal opinion issued by WJZ on April 10, 2025, which concluded that the hardship clause could be used to depart from certain provisions of the law when necessary.
As an example, Silvania noted that while the Bion Law states that only employers may request a tax exemption on behalf of their employees, the hardship clause could allow the Minister of Finance to let employees submit applications directly if employers fail to do so.
According to the former finance minister, the same legal mechanism could be used to extend the overtime tax exemption to a broader group of workers, including police officers.
Option Two: Amend the Law
Silvania's second proposal is to amend the Bion Law to remove what he describes as deficiencies in its current wording.
He revealed that before leaving office, he had already commissioned a draft amendment that incorporated recommendations from several government agencies, including the Ministry of Finance, the Fiscal Affairs Department, the Tax Inspectorate, the Receiver's Office and WJZ.
However, because he left office before the legislative process could be completed, the proposal was never presented to the Council of Ministers.
According to Silvania, completing a formal amendment would still require advice from the Social Economic Council (SER) and the Council of Advice before it could be submitted to Parliament.
He warned that the normal legislative process could take up to two years, delaying relief for affected police officers.
Immediate Policy Directive
To avoid such delays, Silvania suggested that Minister Cooper seek parliamentary support for an aanschrijving—a policy directive that could immediately change the way the law is implemented while a formal amendment is prepared.
He pointed to his own experience in 2022, when fuel prices surged and, as Minister of Finance, he successfully sought Parliament's backing for an administrative directive that eliminated one layer of turnover tax on gasoline.
According to Silvania, the measure reduced fuel prices by 24 cents per liter within a week.
He believes a similar approach could be used to resolve the current dispute over the Bion Law.
Questions for the Government
In his letter, Silvania asks Minister Cooper to indicate which of the two options the government intends to pursue and, if action is planned, when police officers can expect a solution.
If neither option is adopted, he asks the Ministers of Finance and Justice to explain how they intend to address the concerns of officers who remain excluded from the overtime tax exemption.
The proposals add another chapter to the growing debate surrounding the implementation of the Bion Law, with police officers continuing to seek clarification on why they have not benefited from a tax measure that applies to many other public and private sector employees.