WILLEMSTAD — More than 80,000 individuals and businesses on Curaçao benefited from the cancellation of old tax debts dating back to 2017, involving a total amount of over 3 billion guilders, according to the Curaçao Audit Chamber in its Report on the 2023 Annual Accounts of the Country of Curaçao.
The tax debt write-off was announced in early 2023 by then Minister of Finance Javier Silvania of the MFK. However, the General Audit Chamber concludes that the measure was not processed lawfully and should have been formally included in the government’s annual financial statements.
According to the auditors, the government acted in violation of the National Ordinance on Public Accounting 2010, which requires all outstanding tax assessments to be recorded in a mandatory overview. By excluding the old tax debts that were written off, the annual accounts failed to present a complete and accurate picture of the state’s financial position.
Concentration of Large Debts
The report shows that the forgiven tax liabilities were not limited to small arrears. A total of 297 taxpayers each had outstanding debts exceeding 1 million guilders, together accounting for 836.8 million guilders.
Another 4,958 individuals and companies carried tax debts ranging between 100,000 and 1 million guilders, representing a combined amount of more than 1.2 billion guilders.
The largest group consisted of 75,095 taxpayers with smaller debts under 100,000 guilders. While individual amounts were lower, their combined total still reached nearly 945 million guilders.
Concerns Over Transparency and Accountability
The General Audit Chamber emphasizes that the issue is not limited to the policy choice to forgive old debts, but primarily concerns financial transparency and legal compliance. By not properly recording the write-off, the government failed to meet statutory reporting requirements, undermining parliamentary oversight and public accountability.
The findings add to ongoing debate about public financial management and the handling of large-scale fiscal decisions in Curaçao. The Audit Chamber stresses that accurate reporting of tax receivables and write-offs is essential for credible government finances and informed decision-making by both policymakers and the public.