NAf 2 Million Turnover Tax Payment Not Enough For Struggling Netherlands Antilles Island

by Amanda Banks, Tax-News.com, London

10 December 2001

A delegation from the St Maarten government to the Netherlands Antilles central government to discuss St Maarten's current financial crisis has proved a success with the central government agreeing to pay NAf 2 million in outstanding turnover tax to the Island government.

However, St Maarten's plight is so severe that Finance Commissioner Sarah Wescott-Williams told reporters that it has only 'helped a little.' She added that the knock-on effect of the September 11 terrorist attacks in the US had worsened the Island's economic situation.

The St.Maarten-based Daily News Herald has reported that Wescott-Williams is determined to deal with a further matter concerning the central government's practice of deducting a slice of the premium of the Social Insurance Bank SVB from St Maarten's share of the turnover tax.

'The central government and the SVB say we have an agreement, but we say we don't,' explained the Finance Commissioner. 'It is still not clear whether all islands are part of this scheme. We have had a problem with the proposal since the beginning.'

She also confirmed that St Maarten will continue to press the central government for a further NAf 3 million as part of a liquidity assistance payment. The claim has been discussed since last year and this will be the third installment of the assistance - 'we will not let up on those discussions with the central government,' said Wescott-Williams.

Recommended