WILLEMSTAD – Finance Minister Charles Cooper has defended the government’s decision to stop collecting large volumes of old tax assessments, arguing that the policy has had a positive impact on Curaçao’s economy.
Speaking during a parliamentary debate this week, Cooper addressed ongoing criticism surrounding what is commonly referred to as the “tax forgiveness issue.” The minister stressed, however, that the government does not view the measure as tax amnesty, but rather as a formal decision to place certain outstanding assessments outside further collection.
According to Cooper, the policy helped improve the financial position of many businesses and individuals by removing long-standing, effectively uncollectable tax debts from their balance sheets. As a result, companies were better positioned to meet lending criteria at banks and other financial institutions.
“With these debts no longer weighing down their accounts, businesses were able to access new financing,” Cooper told Parliament. “That, in turn, made it possible to invest again, which supports economic activity and growth.”
The minister emphasized that his comments were not meant to justify the original policy decision, but to explain the economic effects that followed once the measures were implemented.
Earlier reports, including findings by the General Audit Chamber of Curaçao, revealed that in early 2023 the government placed tax assessments from 2017 and earlier outside collection. This affected more than 80,000 tax numbers belonging to both companies and individuals, representing a combined outstanding amount of over 3 billion guilders.
The measure also applied to tax debts that were already subject to payment arrangements. Cooper acknowledged that it is difficult to determine how much revenue was ultimately lost in cases where payment plans were in place. He noted that the existence of a payment arrangement does not automatically mean that taxpayers consistently complied with their obligations.
The issue remains politically sensitive, with critics questioning the fairness and long-term consequences of removing such large sums from the tax rolls. The government, however, maintains that the clean-up of old, uncollectable debts has contributed to renewed economic momentum on the island.
