Dear Editor,
During the recent budget deliberations in Parliament, the query on how higher tax compliance would be ensured was answered by the Minister of Finance along the lines that prompter action would be undertaken after one issued warrant of payment to the tax payer. This response seemed to satisfy the Member of Parliament (MP) who posted the question. This response, however, suggests that higher tax compliance will be sought from those tax payers who are already in the system and paying taxes.
These taxpayers are too often confronted with bogus assessments on supposed late payments, simply because the Receiver and the Tax Department do not have a synchronized system permitting the latter to instantaneously view the payments made by the receiver.
Almost on a monthly basis tax payers are forced to issue payment receipts, issued by the receiver, to the tax department in protest of a baseless warrant for payment (due to supposed non-payment or late payment) issued by the tax department. If this protest (sending a proof of payment from their own system back) is not filed the promised new actions may not be prevented.
Yes, at times the tax payer may not have paid enough and receives a warrant for additional payment. In such cases immediate real action to collect may be expected sooner, well soon after all legal remedies have been exhausted.
Yet, this promise of prompter action alone will not translate in enhanced tax compliance in the country, for it is not only those who are registered and paying taxes that are supposed to bring about a higher compliance. Is it not a fact that currently a small portion of society is carrying a far larger portion of not registered, non-tax paying entities? Enhanced tax compliance should coincide with the promise to broaden the tax payer base and to ensure that those who are operating outside of the system are introduced to the obligations others have fulfilled for years.
To highlight a few examples of entities that should be brought in to broaden the tax payer base:
*There are so many entities that enjoy a tax holiday without expiry date. The tax holiday was intended to permit a viable start-up to these businesses. Being in business for years now may be a reason to assume that the tax holiday may now be withdrawn and these businesses may now be included in the group of tax payers.
*Businesses, not registered or licensed, are offering products and services, generating revenues outside the system and having no contribution obligation as they are not known. The fact that these businesses are undermining our secure business environment is one consequence – that they are permitted to engage in unfair competition practices is another.
*Some individuals, who should be part of the tax payer group, simply abuse the dual tax system between Dutch and French St. Martin and ultimately do not contribute in any jurisdiction. These individuals declare at our tax department that they are declaring and paying on the French side and on the French side they declare to have a foreign income and are paying in a foreign territory. The Tax Department on the Dutch side seems to be satisfied with that declaration and undertakes nothing to verify with the French counterpart on this declaration and payment. So, many prominent and outstanding citizens misuse this dual tax system, generate an income and pay no one.
*Then there are the villa rentals conducted, through which revenues are generated in the island, yet it remains unclear if this income is taxed in any jurisdiction.
Is this not a tax compliance issue as well even if it can easily be qualified as tax evasion? Yet no one deals with these forms of tax evasion (permitted or not), and of course that is simply because these evaders are not known.
The promised actions above can only help to enhance the tax compliance of the known tax payer who did not file or pay correctly when prosecuted for tax evasion. The real tax evaders look on, comment and criticize those “caught” for improper tax compliance.
The need for more revenues by the country should have placed a focus on this segment of society as well, instead of a continued focus only on those known and within easy reach.
Enhancement of tax compliance is therefore much more and should be much more than the promised action against the known tax payers. Enhancement of tax compliance should include all those businesses in operation under the radar and all those citizens who peddle between the Dutch and French side.
A simple declaration that you are declaring elsewhere should not be sufficient, this declaration should at least be supported by a copy of that foreign declaration filed. That is a start and not a costly one at that. We can only hope that tax compliance from all will be sought and not just from a few.
Chamber of Commerce & Industry
Dear Editor,
The St. Maarten Chamber of Commerce and Industry (COCI) is of the opinion that compliance with international standards applicable to commercial registries will not solely contribute towards a more secure business environment on St. Maarten, but will also contribute towards the country’s initiatives to combat money laundering and terrorism funding activities.
Compliance with Financial Action Taskforce (FATF) on Money Laundering international standards set in February 2012 (Anti Money Laundering/ Combating the financing of Terrorism AML/CFT standards) will be achieved if all within the country implement and execute measures that will aid hereto. Financial institutions, Insurance companies, Notaries and Lawyers have already commenced the implementation and execution of measures under the heading “Know your customer.” Share holder registers and Ultimate Beneficiary Ownership (UBO) records are already being maintained within the entities mentioned afore, yet a proper regulation and central registry hereon has not been provided for.
The Parliament of the European Union (EU) in its guideline of May 20, 2015, outlined the objective for its member states to have in place laws and administrative provisions through which the guideline requirements will be in effect by June 27, 2017. The guideline is formulated with due consideration of the FATF recommendations, and seeks to have a more structured and organized approach towards the combatting of money laundering, terrorism funding and organized crimes. The member states have committed themselves to have the appropriate laws and administrative provisions in place. Within the Kingdom, the Netherlands has currently on consultation a law amendment to the Chamber of Commerce Register law (Handelsregisterwet of 2007) and the Civil Code.
COCI Operations, having received unanimous support from its Board of Directors, has taken the stance that Country St. Maarten being part of the Kingdom must do its part. COCI shall have formulated law amendment proposals to be presented to the Government of St. Maarten later this year for its consideration. COCI shall conduct prior consultations with stakeholders to ensure input is incorporated in proposals to be presented to Government. COCI is of the opinion that we must be proactive and undertake initiatives that will underscore the country’s intent to be compliant with international standards and demonstrate its commitment to combat crimes that adversely affect the integrity, stability and credibility of the financial sector, and so the country.
COCI advocates that Country St. Maarten commits to adopt and have implemented the required supporting laws to enable a central registry with proper safeguards, to be maintained on shareholding and ultimate beneficiary ownership by June 2017. COCI will do its part and trusts that the Government will give due and timely considerations to its proposals, in the interest of St. Maarten.
Peggy-Ann Brandon
COCI President
Dear Editor,
The book of principles advised that, “A messenger who cannot be trusted can cause a lot of trouble, but good communication makes progress happens.” As I ponder on this advice, it informs me that more often than not, the best course of action to deal with a dispute is to allow the dust to settle. But, during the heat of the moment is when one listens attentively to the comments, analyses them, and then responds with specific data that surround the particular circumstance.
For some people, the result of the recently-held calypso elimination was disappointing, while for others they have absolutely no problem with the outcome. Personally, the public can shred the judges to pieces if they so desire; but when it comes to those who are involved in the art form, then the situation becomes different.
When I listened to a calypsonian, who has been crowned numerous times (perhaps the most and with some controversy), remark that the judges could not differentiate between judging a calypsonian and a comedian, then, it truly indicates that there is a division among members of the art form. His comments remind me of the behaviour of some politicians, who feel that politics belongs to them only. Last year, when this calypsonian was placed first in the eliminations by a fraction of the same judges, were they good then or only because the outcome benefitted him?
Another calypsonian, who captured the crown about 4 times, also trashed the judges. A few years ago, when a particular judge gave him a perfect score for all segments of his rendition, nothing was wrong then. I can recall in the village, the large group of calypso lovers who were at the front remarked, “What, how he get there?” None of the supporters had him placed, much less to be crowned king. The question is, were these judges competent then or only because it worked in his favour?
However, the most damaging part of this scenario is the behaviour of the MC, who continuously enticed the public to trash the judges – someone whose task was to entertain and release the results at the appropriate time. When one has to deal with a twofaced individual, it is hard to find the correct words to describe that person. The only words that can be used appropriately, in order not to insult, are, “the MC is nothing but a counterfeit.”
When I listened to how the MC of the calypso elimination commented on the decision of the judges, I shook my head in awe. But during the upheaval, I learned that this is exactly who he is. He says one thing in front of one’s face and behind his or her back, he twisted his tongue.
What was amazing is that the MC made sure that he informed the public that SCDF pleaded with the judges and asked if they could live with their decisions. Oh, when one throw stones and hide their hands…Wow! Little do his godson, The Protégé and the public know, this same MC said repeatedly to the judges in the presence of members of SCDF, “A goin tell all you something, I agree wit all you. He was definitely off key. From de moment he start to sing, I tell my wife dat he is singing out of key, and so I agree wit all you.”
Now that the MC has achieved his goal, he should ask himself, can he look The Protégé in his eyes and the same public, and tell them that he did not say that he agreed with the judges’ decision? Then he should ask himself further, can he live with his conscience?
What was startling is that before the names were announced, the MC and other persons knew who the finalists were. This information should have been divulged just prior to the announcement. Personally, I believe that the issue was mishandled. If SCDF needed to dialogue with the judges, they should have consulted them privately. What is it they expected the judges to do in front of the hundreds of people, change the score?
Moreover, it’s so strange that the MC said that he did not understand what The Mighty Pepper sang. The story was as clear as day. Anyone who lives on Sint Maarten knows exactly what the song was about. He even mentioned the name of the politician’s spouse and asked her what to do in his crisis, and also demonstrated how the situation has affected him.
This is the hypocrisy of the MC who claimed on Saturday that he did not understand what Pepper sang about, but a few days after, the same MC was on air praising how good Pepper’s rendition was. So which is it really?
There is an outcry to have competent judges for the calypso shows. The question is: Does being experienced in the art form become a guarantee for the desired results? As far as I can see, the judges are viewed as incompetent, depending on who is affected.
Joslyn Morton
Dear Editor,
“In the Netherlands Mister Van Raak is a reasonably insignificant Member of Parliament.” In my secret post-box in The Hague I regularly find secret documents from Curaçao and St. Maarten. Very nice to read most of the time; except of course when you read that you are “reasonably insignificant.” This line came from an internal note dated April 15, 2012, from the MFK party of Gerrit Schotte, the former Curaçao Prime Minister, who recently got sentenced to three years in prison because he was being paid by Francesco Corallo, the St. Maarten gambling boss.
Francesco Corallo is a mafia boss. I say this, because I’m allowed to. Gerard Spong, a lawyer in the Netherlands, filed a complaint against me on behalf of Corallo, because of alleged defamation and insult because I called Corallo a “mafia boss” in several columns on The PostOnline. Recently, I received a message from the head of the Prosecutor’s Office, which showed that I did my work very well as a Member of Parliament. The Prosecutor said I had the right to address wrong-doings and I also named my sources. From the secret service of Curaçao and the Ministry of Internal Affairs in Italy – all found in my secret post-box.
These are the same sources that helped getting Schotte convicted, the Prime Minister who, according to the judge, was nothing more than a puppet for Corallo. Spong had to file the charges for his client Corallo, but should have known that these kind of legal tricks aren’t really worth trying in the Netherlands. The charges do, however, befit the culture of intimidation in the Dutch Caribbean, where people like Corallo try to silence their critics.
Hopefully more people dare to speak their minds every time Spong gets refuted.
Together with MP André Bosman I made a proposition for a large-scale investigation into the underworld and upper world in St. Maarten and Curaçao, especially the connection between politics and the gambling industry. That investigation, with the Netherlands investing more than US $22 million and assigning more than 50 people to this job, has started now, in collaboration with the United States (laundering of drug-money) and Italy (involvement of the mafia). In Curaçao gambling boss Robbie dos Santos has been sentenced to pay almost US $40 million. Dos Santos is closely connected to the big boss Corallo.
Together with Bosman I also asked questions about the role that KPMG plays in the gambling industry, because this Dutch accountancy office took care of the books of Corallo and possibly of Dos Santos. I’m also curious about their relationship with UTS, a telecom company in Curaçao, which may play a big role in illegal lotteries and sports betting, where quite possibly a lot of money is being laundered. The answers of Minister Plasterk were disappointing: he states that this is mainly an affair of the governments of St. Maarten and Curaçao.
But at the same time the Minister’s answers gave me hope. Plasterk pointed to the ongoing investigation when it comes to KPMG. He also recognised that the undermining of the gambling industry hurts “the Kingdom as a whole.” The Minister can’t say anything yet, but he said the investigation continues. In the meantime I appeal to the board members of KPMG in the Netherlands to closely monitor how things are working at KPMG in Curaçao and St. Maarten. I realise that I’m only an insignificant MP. But I suspect that a lot is wrong with KPMG on those islands.
Ronald van Raak
Dear Editor,
Let’s big up one of our own now. Very rarely on St. Maarten do you come across an individual who is so strong in his or her convictions, and believes in the collective ability of a team for the greater good of anything. Carnival on St. Maarten is blessed to have someone who always puts the festival first, fights for it and is unafraid to stand and take “blows” for unpopular, but necessary decisions. I mean this man is completely unafraid.
Of course, I am talking about SCDF’s president Mike Granger. I am a Carnival lover. Been that way for more than 30 years. I have seen where Carnival has come from. I have seen “modern-day presidents” lead the festival to the brink of destruction. But, this man right here is an anomaly. Nobody in their right mind, even those who offer different opinions about Carnival, can ignore the level to which Granger has brought this festival.
There was a time when it would have been unheard of for our Carnival to be mentioned in the same breath as Aruba, Curaçao and Trinidad. Now I dare say Aruba and Curaçao are looking up at us, and we are not very far behind Trinidad when it comes to the product we offer. Have you been paying attention to this man’s tenure? I have. Very closely too, because I love Carnival. I need to make sure the shepherd knows what he/she is doing. He is ever forward thinking; some might say calculating. Very smart and skilful in how he approaches challenges. A tactical thinker.
Needed regulating on children in the Village. Did that. Needed more protection for local bands. Did that. Broke the stigma and established the festival as safe all around. Did that.
Needed more help for pageantry. Outsourced that. Moving away from government for funding, embracing self-reliance. Doing that. Securing major creative financing with the private sector. Did that and still doing that. Made “branding” a household word on St. Maarten. Did that.
Needing to take Carnival global. Doing that impressively. Modernizing Carnival through social media, streaming, etc. Did that. Involved more stakeholders in key aspects of Carnival. Did that. Needing to run the festival like the business that it is. Did that.
Professionalizing Carnival operations. Doing that. Unwavering in enforcing Carnival rules and regulations. Absolutely doing that. Filling flights and hotels and extending St. Maarten high season. Definitely doing that. Travel deals with hotels and airlines: Did that
Most impressively, he is unselfish in his role. Listen to him speak. He always talks about involving everyone, about SCDF not being know-it-all’s, about needing everyone to do their part to make the festival work. All of the companies that work with SCDF are locally-run companies, by young St. Maarten entrepreneurs. All of them! Carnival is probably the only major event/company/enterprise that does not have the finger prints of special interests all over it.
Not the same names, not the same families, just local people. Perhaps this is why despite all the in-roads of Carnival, it still struggles here and there because the regular power-players can’t seem to find a way to get their hands on it. Do you realise that? Carnival does not involve the usual suspects, and this is a good thing! But still, when they can’t get their way, they have a problem with Carnival. But that’s okay. Keep Carnival in the hands of people who care. Don’t put it in the hands of people, who want to suck it dry, because all they see is dollar signs. Or people, who feel that they and their children should have the keys to everything on St. Maarten.
Finally, my compliments, Granger to your steadfast belief in rules and regulations. You possess the intelligence to realize that if you compromise your own regulations, your entire organization loses credibility. I do not envy you. In Carnival you get to deal with every type of personality on God’s good earth. But you stand there and you keep going. I don’t know how you do it, or how your family tolerates it. But my message to you is to stay steadfast. Whenever your tenure is over, you will not only be a great loss to Carnival, but you will be regarded as one of, if not the greatest president in the history of the festival.
Steadfast Mike, steadfast!
Your old school mate DRG
