CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Netherland Antilles Break Up May Begin In July '07

Netherland Antilles Break Up May Begin In July '07

by Amanda Banks, Tax-News.com, London

28 September 2006


The transition process towards the dismantling of the Netherland Antilles could begin in July 2007, according to the Dutch Council of State.

However, acknowledging that the target date is only ten months away, the Council, or RvSt, has warned the constituent islands against too much optimism about the date, the Daily Herald has revealed.

According to the report, the RvSt stated that: "There are great risks to a de facto dismantled Netherlands Antilles without having the legal and organisational structures in place. A decent and multi-annual transition plan is vital."

The current process has its origins in a constitutional crisis which erupted in 2004 due to irreconcilable differences between the constituent islands, and a joint Commission appointed by the Netherlands and the local government concluded that the jurisdiction should be broken up, with the islands of Curacao and St Maarten becoming autonomous countries alongside the Netherlands and the Caribbean island of Aruba, whilst the remaining three islands - Saba, Bonaire and St. Eustatius - should be brought under the direct control of the Dutch government in The Hague. This was approved by the Dutch cabinet in December 2004.

Towards this end, the RvSt has suggested that a government commissioner, supported by a secretariat, should be appointed by the Kingdom Council of Ministers to oversee the implementation of the actual dismantling of the Netherlands Antilles, including the introduction of new laws.

The RvSt is also proposing a 'Legislation Bank' (Wettenbank) of the Netherlands Antilles, and the five island territories which would facilitate a complete overview of all laws that are applicable on July 1, 2007. From this date, Dutch laws for the three smaller islands will begin to be implemented.

However, the council warned that achieving country status for Curacao and St. Maarten, and direct ties for the other islands, would be a “considerable, complicated and lengthy operation,” with both national debt and individual island debts to consider.

The jurisdiction's total debt, which stands at NAF5 billion (US$2.8 billion) will be restructured with the assistance of the Dutch government, according to the 2005 Roundtable Agreement.

TAGS: Curaçao

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »