15 million euros for modernization of the Sint Maarten tax authorities

The Netherlands has made an amount of 15 million euros available from the Reconstruction Fund to modernize the tax administration in Sint Maarten and to optimize financial management. At the beginning of March, phase 1 of the project started, in which the preconditions that are necessary to start the actual transformation – the so-called “quick wins” – are filled in. This includes clearing of the backlogs, cleansing of the registration database and the collection of overdue debts from citizens and companies. This project is part of measure C4.1 in the Country Package of Sint Maarten.

Image: ©@Andrii Yalanskyi/Shutterstock.com

As a result of first hurricanes Irma and Maria and then the Covid-19 pandemic, the economy of the Country of Sint Maarten has suffered a lot and the country has had to deal with much less tax revenue. The Tax Administration is currently insufficiently able to perform its task. This is partly due to understaffing, outdated work processes and a great need for an ICT investment. The aim of the project is to modernize the tax administration and at the same time simplify the tax system (this is measure C.1) so that the tax authorities will be able to levy and collect taxes in an accurate and efficient manner in the future. In this way it is promoted that everyone contributes their "fair share" to the further development and financial stability of the Country of Sint Maarten.

Office space has been set up for this project and some employees were already hired to implement the identified “quick wins”, which are expected to take between 12 and 18 months. A program manager has been hired who is responsible for the implementation of the first phase of the transformation of the Tax Authorities and who will design the actual transformation (phase 2) together with the organization. This project is funded from funds that have been transferred from the Trustfund (Reconstruction) to the budget of the Temporary Work Organisation O as committed in December 2020.

Read the Management Summary Plan of Approach C4.1 Tax and Customs Administration Transformation Phase 1 here.