Tax compliance can lead to Tax write off’

This topic can be or is very controversial but it has to be addressed says Member of Parliament George
Pantophlet. He believes that Tax compliance can lead to Tax write off’s. This statement might sound like
an oxymoron but the member says there is great possibility in this aspect. He also feels that the manner
in which taxes are collected should be looked into. Article 6 of the 1970 collection ordinance which was
amended February 16, 1995 and established in June 2 1995 reads as follows freely translated The
Receiver’s office is authorized to prosepone payment of taxes and to make easier payment
arrangements upon request of the taxpayer in the event there is irrefutable proof that because of an
extraordinary situation out of his control he cannot comply with the prescribed payment regulations/
conditions. I think an change should be made stating instead of authorize, must. Especially when it
comes to relieving the pressure on the most vulnerable being the senior citizens. Tax compliance has
been a challenge for decades now, this is based on reports that have been made over the years. It is no
secret that the Inspectorate of Taxes does not have sufficient staff nor equipment to keep up with the
workload. The receiver’s office also finds itself in the same situation. Amounts budgeted by
governments to upgrade these departments were considered to high by the Committee For Financial
Supervision. Interestingly they are the same ones who are complaining about tax compliance. What is a
pity is that this deficiency is being used by businesses and persons not to file or pay their taxes. At the
moment the present tax compliance continues to be extremely low. Some or too many neglect their
civic responsibility towards society by not paying their taxes. On other hand he has heard the cry of the
seniors who are the low hanging fruits when it comes to tax collection. He is sure that businesses and
persons are also affected by this. He had a discussion with a Member of Parliament from Curacao whose
parents have a business. They were faithfully paying their taxes. The Minister of Finance of Curacao
decided to grant Tax write offs on taxes owed prior to 2017. His parents are extremely happy and are
enjoying a real breath of fresh air. Excluded from this write offs according to the Minister of Finance of
Curacao were the millionaires. For me it was interesting to hear this because millionaires should not
owe taxes in the first place but that is another discussion. He is quite aware of the fact that government
earns its revenues through taxes and they cannot carelessly write off taxes. But he is convinced that
taxes owed prior to 2017 should be written off. There is something called bad debts or uncollectible
receivables. Questions he would ask would be how much is owed to government by organizations and
persons on taxes prior to 2017, another question would be how much is being collected from these
persons and or Organizations. Tax collection is a condition sin qua non, however one has to be careful
not to push people/businesses into poverty. Because they can become a burden to Government as it
relates to social responsibilities. Some of the complaints I continue to hear are from senior
citizens/pensioners who are now feeling the brunt of it. To make tax write off’s complete, the receiver’s
office should not be allowed to take any revenues belonging to the businesses or persons and apply it to
back taxes prior to 2017. Discussions should still be held to ensure if this option is still open, the financial
situation of the person or business is taken into consideration. I am quite sure that there are businesses
and persons who would feel that it is not fair because their taxes are up to date. But this should not be
a deterrent. The case is to ensure that the files are up to date and kept current. Tax compliance is the
key that will lead to Tax write offs. Legislation to do so was started some years ago but never finalized. It
is time again to make it a matter of urgency. Doing nothing is not an option.