Curaçao Tax Scandal: Secret Deals and Missing Millions

Major Tax Collection Crisis Uncovered in Curaçao

A shocking investigation has revealed widespread mismanagement and potential corruption within Curaçao's tax collection agency, the Landsontvanger, with millions in tax revenue going uncollected while special deals were made for politicians and officials. The scandal has prompted the former Finance Minister to threaten legal action just before his recent departure from office.

Secret Deals Outside Official Records

According to reports from the government oversight organization SOAB (Stichting Overheidsaccountants Bureau), the head of the Landsontvanger, Alfonso Trona, personally approved tax advances and special arrangements for "both civil servants and non-civil servants, including senior officials and (former) political office holders" without proper documentation. These deals were made through direct phone calls or WhatsApp messages and kept in "separate files" outside official records, making them impossible to audit or verify.

The investigation found that many residents and businesses who were late with tax payments received few or no reminders, while certain privileged individuals received tax refunds in advance - sometimes even before they filed their tax returns. "No one can check whether the payment agreements are correct," warned the SOAB control service as early as 2022.

Political Fallout and Minister's Departure

The scandal has reached the highest levels of Curaçao's government. Former Finance Minister Javier Silvania threatened to take the matter to the Public Prosecutor's Office shortly before leaving his position last week. Silvania had reportedly asked the Council of Ministers in 2023 to dismiss Trona, but this only led to the establishment of a "support team" at the department.

The reports have been with Curaçao's parliament for some time but have so far had no political consequences. Parliamentarians contacted by journalists avoided answering questions about why no action has been taken.

Massive Financial Consequences

The financial impact of the failing tax management is substantial. The College financieel toezicht (Cft) had previously stated that Curaçao's inadequate tax collection has been causing budget deficits for years, hindering the reduction of government debt. The oversight body has been pushing for reform and modernization of the department since 2020.

A 2022 sample survey of high-risk defaulters showed that less than half of those with payment arrears actually received a reminder. Of that small group, only a fraction could be confirmed as having actually been sent the reminder.

Official Response and Justifications

In response to investigators, Trona acknowledged problems within the department but blamed them primarily on a fire in the old Landsontvanger office and numerous relocations. He claimed that so many files were lost that "there is currently no question of a proper administration."

When contacted for comment, Trona stated: "In the context of the principle of hearing both sides regarding the SOAB reports, I can inform you that my counter-arguments are already known to them. As you know, as a civil servant I am bound by a duty of confidentiality, which unfortunately does not allow me to speak about this publicly."

The situation highlights ongoing governance challenges in Curaçao, where the government has struggled for years to balance its budget. As long as tax collection remains unreliable, the island remains vulnerable to new budget deficits and financial problems that could affect essential public services and economic stability.